Some Key Persian Gulf Oil Ministers Hint at Support for Increasing Output
Some key Persian Gulf oil ministers hinted that they back production increases to ease high oil prices, but they carefully avoided specifics about how much and when.</br></br>Meeting in Riyadh, Saudi Arabia, oil ministers of the Gulf Cooperation Council said they hoped to "maintain the market stability . . . for the interests of producers and consumers without harming the world economy." The council comprises Saudi Arabia, the world's largest exporter of oil; Kuwait, the United Arab Emirates, Oman, Bahrain and Qatar.</br></br>The meeting comes as concern about higher oil prices is intensifying. The price for West Texas Intermediate crude now hovers around $29 a barrel, and inventories are unusually low. The supply tightness has pushed prices high enough that major consuming nations, notably the U.S., are beginning to worry about its impact on inflation and their economies.</br></br>UAE oil minister Obaid bin Said al-Nasseri told his country's official news agency WAM that oil prices in a range of $20 a barrel to $25 a barrel would be an acceptable level for both consumers and producers. An identical range was mentioned by Mr. Naimi a few days ago on a trip to South Korea, according to Korean officials.</br></br>That would imply some increase in supplies when the Organization of Petroleum Exporting Countries meets March 27 in Vienna, unless demand suddenly slackens for seasonal or other reasons.