Saudi king blames oil prices on speculators, taxes

AP
Sunday, June 22, 2008

JIDDAH, Saudi Arabia -- Saudi Arabia's oil minister says the kingdom is willing to produce more oil if customers need it, but he cited no specific production increase.

The kingdom will pump about 9.7 million barrels a day beginning in July because of recent increases already announced.

But Saudi Oil Minister Ali al-Naimi says it can produce more than 9.7 million a day if customers request it.

The oil minister also says the kingdom can increase its pumping capacity long-term by as much as 2.5 million extra barrels a day.

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Al-Naimi was to make the announcements later Sunday in a speech at an oil meeting in Jiddah. The AP obtained a copy of the speech in advance.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP's earlier story is below.

JIDDAH, Saudi Arabia (AP) _ King Abdullah said Sunday that Saudi Arabia was not to blame for soaring oil prices and instead pointed his finger at speculators, high fuel taxes in consuming countries and increased oil consumption in developing economies.

The king, who opened a high-level oil summit in the port city of Jiddah, said the world's largest oil exporter already had increased its production to 9.7 million barrels a day. Abdullah did not announce any further, specific crude increases.

"In the past few months we have raised our daily production of oil from 9 million barrels to 9.7 (million) barrels," he said. "And we are ready to meet any additional demands in the future."

Full article here.

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