Saudi Arabia Pledges to Maintain Oil Production Quota

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Last updated at: (Beijing Time) Sunday, June 02, 2002

Saudi Arabia Pledges to Maintain Oil Production Quota

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Saudi Arabia on Saturday stressed the importance of maintaining the oil production quota by member states of the Organization of Petroleum Exporting Countries (OPEC) and of their cooperation with non-OPEC oil producers, Kuwait's official KUNA news agency reported.

Saudi Oil Minister Ali Bin Ibrahim al-N'aimi made the remarks in a statement issued after his meeting with OPEC Secretary General Ali Rodriguez Araque, who arrived in the Saudi Red Sea port city of Jeddah earlier in the day for an official visit to the kingdom.

"With regard to production ceiling and quotas, there is no intention at present to change them during the next ministerial meeting of OPEC due on June 26," N'aimi said.

"Current prices are within the required limits and within the approved price change...it is neither low nor high," the minister added.

He also noted that there was a balance between supply and demand which is expected to continue for the next few months.

"Based on this, it is unlikely that OPEC members will change the levels of ceiling or quotas during the next ministerial meeting," he said.

The oil minster said that during their talks, he and Rodriguez discussed the international oil market situation and cooperation between OPEC member states and non-OPEC producers.

"Coordination between OPEC member states and non-OPEC producers will be intensified in the next few weeks to ensure the continuity of the market's stability and the maintaining of oil prices within the targeted range," N'aimi said.

He added that their meeting also tackled about the recommended Saudi candidate for the 11-number OPEC's new secretary general.

In 1999, oil-rich Saudi Arabia nominated its permanent delegate at OPEC Sulaiman Al-Harbash for the post of secretary general of the organization.

According to the constitution of OPEC, the assignment of the post needs unanimity from all member countries of OPEC and must be determined before the June 26 ministerial meeting in Vienna.

Thus, if the vote for Harbash to take the post is not unanimous, Rodriguez will remain in the post.

Experts expect the Saudi candidate to have higher chances of victory, especially after Iranian officials voiced their support for him if their country secures a high post in the organization's secretariat.

In addition, the Saudi chance of success is boosted due to the kingdom's closer relations with Iraq after the Arab summit held in the Lebanese capital of Beirut in March this year.

Saudi Arabia, the world's largest oil producer and exporter, boasts a quarter of the world's proven oil reserves. Its production quota in OPEC stands at 7.053 million barrels per day.

The kingdom has repeatedly pledged to ensure oil market stability amid appeals to avoid using oil as a political weapon in the Arab-Israeli crisis.

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