Saudi rules out crude shortage

www.gulf-daily-news.com Vol XXV   NO. 319      Sunday      2 February 2003

ABU DHABI: Opec power Saudi Arabia said yesterday there was no shortage of crude oil in the market and it would do its part to ensure the producers' group fulfils its new higher production ceiling of 24.5 million barrels per day (bpd).

"We have responded to the demands of our customers... there is no shortage of crude supply," Saudi Arabia's Oil Minister, Ali Al Naimi, told reporters ahead of an energy and environment conference.

"I can assure we will make sure, as Saudi Arabia, that 24.5m bpd is delivered," he said. Opec agreed last month to raise its output ceiling by 1.5m bpd to 24.5m bpd in a bid to cover a supply shortfall created by strike-bound Opec member Venezuela.

The oil minister of Saudi Arabia, the world's largest oil exporter, declined to say how much the oil the kingdom was pumping, but he said Riyadh now has spare production capacity of 2-2.5m bpd.

Naimi said Opec stood ready to make up for any supply shortages without the release of emergency strategic reserves.

"This is the plan (to cover any shortage without the release of any global strategic stock) and we should have the first crack at it," he said.