Saudi Arabia and Russia affirmed the necessity to ensure the stability of the international oil market and prevent any shortfall in oil supplies. The two countries also reached an accord to maintain fair oil prices.
This was disclosed during a joint press conference which followed talks between Saudi Minister of Petroleum and Mineral Resources, Eng. Ali bin Ibrahim Al-Naimi, and Russian Energy Minister, Yusufov Igor Khanukovich, in Moscow on Friday evening.
In response to a question, Eng. Al-Naimi stressed the Kingdom’s readiness to meet any emergency that OPEC could face in the event of declining oil supplies. He pointed out the Kingdom’s ability to make up for any potential shortfall in the oil market. He cited steps taken by OPEC in cooperation with major international oil producers such as Russia when there was a reduction in Venezuelan oil supply, and he reiterated that the Kingdom is ready to meet any additional requirements for oil supply.
With regard to fair prices, Al-Naimi said that the Kingdom has been exerting great efforts to maintain a fair oil price of between $22 and $28 per barrel, which is the price sought by many oil-producing countries. This would be in the interests of producers and consumers and is a satisfactory price for international companies.
With respect to the future of OPEC in the event of war against Iraq, he said that the international oil market needs OPEC. He described reports that OPEC will loose control over the market as “a false perception without any basis in truth basis.”
He noted that Iraq is one of the founders of OPEC, and that it is in the interests of oil producers and exporters to maintain the Organization in order to preserve the stability of fair oil prices, production and markets. He pointed out that the main oil consumer countries support the Organization due to its significant role in stabilising the international economy.
With respect to Saudi investments in Russia, Al-Naimi said that he met with a number of representatives of Russian companies and listened to their perspectives on joint investment between the two countries and means to boost economic ties.
For his part, the Russian Energy Minister stressed the necessity of maintaining the stability of the oil market, and noted that it is in the interests of producers and consumers alike to maintain OPEC.
Source: SPA
