Saudi Arabia calls for a meet on Oil prices

The Kingdom of Saudi Arabia has called for an urgent meeting of oil producing and consuming countries to discuss the‘unjustifiable rise’ in fuel prices. Soaring oil prices have reached $ 139 mark and are closing on $ 150, that has led to discontent across the world, especially in developing nations.

The kingdom, world’s leading oil producer, also called for coordination amongst the Opec nations and other major producers to ensure adequate fuel supply in order to curb prices.

Pressure is mounting on OPEC, the supplier of more than a third of  World’s oil, to boost out put in order to ease the effect of high prices on economies across the world.

At a meeting in Aomori, Japan, on Sunday, the Group of Eight rich nations as well as India, China and South Korea had said that there was an urgent need to boost global oil production.

The decision to hold an oil conference was taken by the Saudi Council of Ministers, chaired by King Abdullah in Jeddah on Monday, the official Saudi Press Agency (SPA) said.

‘Current oil prices are unjustifiable in terms of petroleum facts and market fundementals’ the Cabinet said adding that the market has sufficient supply and an increasing commercial inventory.

“Saudi Arabia will coordinate with the OPEC and other major producers to ensure adequate supply’ the SPA quoted the Cabinet as saying.

‘The Kingdom will also work to prevent rise in oil prices in an unjustified and abnormal manner, affecting the international economy, especially the developing countries.’

The Cabinet instructed petroleum and mineral resources minister, Mr.Ali Al-Aimi to call for the oil conference. It would include representatives from oil producing and consuming countries as well as companies involved in production , export and sale of oil.

It is heartening to note that at least in the hour of oil crisis that  Saudi Arabia has taken the initiative in the right direction.