04Jun2004 Al-Naimi speaks on OPEC decision to increase output

Damascus, 4th June 2004

Saudi Minister of Petroleum and Mineral Resources Ali bin Ibrahim Al-Naimi today defended OPEC’s decision to increase output by almost two million barrels per day, saying that the cartel’s primary objective is to keep the oil market stable by maintaining a fair price for the producer, consumer and investor. OPEC’s second objective is to ensure that the oil price does not negatively affect the global economy, which means promoting a price range of $22-28 per barrel.

In a statement at Damascus Airport, after arriving from Beirut, Al-Naimi said that the production increase will lead to a reduction in current burgeoning prices. He noted that OPEC Ministers could target a particular price but cannot guarantee that price, due to the influence of several factors on oil price.

OPEC member countries have decided to increase production by two million barrels per day in July and 500,000 barrels per day in early August, to make production 2.5 million barrels per day.

Source: SPA

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