Kingdom to Work for Oil Price Stability

<a href=www.arabnews.com>ArabNews Staff Writer   RIYADH, 8 June 2003 — Oil ministers from Saudi Arabia, Mexico and Venezuela have pledged to cooperate with other producers in ensuring a fair price for the crude to stabilize the world market.

The pledge came in a joint statement issued after a meeting in Madrid on Friday between Saudi Minister of Petroleum and Mineral Resources Ali Al-Naimi, Venezuela’s Oil Minister Rafael Ramirez and Mexican Energy Secretary Ernesto Martens, the Saudi Press Agency reported yesterday.

The statement said the three countries would continue to cooperate to achieve “stability in the international oil market in a way serving the interests of producers and consumers, the oil industry and world economic growth.” They stressed the need to “continue monitoring developments in the market during the coming few months in a bid to avoid factors that may destabilize it,” the statement added.

The meeting of the two OPEC members, Saudi Arabia and Venezuela, and non-OPEC Mexico came ahead of a ministerial meeting of the Organization of Petroleum Exporting Countries (OPEC) on June 11 in Qatar’s capital Doha. The OPEC meeting will assess the state of the oil market, especially in light of the expected resumption of Iraqi production and the return of Venezuela and Nigeria to their normal production.

OPEC President Abdullah ibn Hamad Al-Attiyah said late last month that the group would probably agree to reduce output at the Doha meeting.

Venezuelan Oil Minister Ramirez said on Friday that his country was holding talks with Saudi Arabia and Mexico seeking an agreement to cut production.

“We have come to Madrid before the OPEC meeting to discuss world oil market situation. We are getting in touch with Russia and Norway and hopefully we would reach good results,” the Reuters news agency quoted Ramirez as saying.