Global players in Saudi for oil supply talks
Top News Article | Reuters.co.uk
By Ghaida Ghantous and Simon Webb
RIYADH (Reuters) - Global oil consumers and producers meet in Saudi Arabia on Saturday to discuss calls for greater transparency in oil markets and investment in production capacity to curb volatile crude prices.
Ministers from the United States, Britain and France, who have all demanded that oil producers ramp up production and open the books on their massive oilfields, will press their case at the meeting hosted by the world's biggest oil exporter.
"With increased knowledge about both what the consuming nations are consuming ... and what the supplying nations are supplying and what their commitment is, there will be increased stability in markets," U.S. Energy Secretary Sam Bodman said.
U.S. oil prices hit a record $70 a barrel in late August, prompting warnings they would hurt global economic growth, before easing to $56 on Friday.
A study released by the U.S. Congress's Joint Economic Committee said this week that OPEC producers -- of which Saudi Arabia is the biggest -- have kept their production levels down and pushed up crude prices.
Chancellor Gordon Brown and his French counterpart Thierry Breton, who are flying in for Saturday's talks, have both pressed OPEC to pump as much as possible and also to improve "visibility and predictability" on oil markets.
But producers blame a lack of global refining capacity for the spike. They have offered an extra 2 million barrels per day (bpd) and say they have had no takers.
Saudi Arabia's oil ministry said in a statement this week that producer concerns about high oil taxes in industrialised countries and the role of speculators driving up prices will also be on the agenda in Riyadh.
Bodman, who arrived in Saudi Arabia after talks in Kuwait, Qatar and the United Arab Emirates, said he was confident that Gulf producers would keep markets well supplied and that they would meet commitments to expand capacity.
Saudi Arabia plans to spend billions of dollars boosting output capacity by 1.5 million barrels per day (bpd) to 12.5 million bpd by 2009, and later to 15 million bpd.
OIL DATABASE
Discussions on the economic impact of oil prices, capacity expansion and market transparency will take place behind closed doors on Saturday.
Saudi Arabia's King Abdullah will then inaugurate an energy forum, which is designed to foster dialogue and exchange of information between producers and consumers.
To mark its inauguration, the International Energy Forum will release data it has been compiling from oil producer and consumer nations, part of its efforts to improve transparency.
But analysts question whether talks between the world's oil sellers and buyers will lead to any tangible results.
"The producer-consumer dialogue looks great on paper. It's a great concept. But it's almost impossible to translate ... into action," said Robert Ebel, energy program chairman at the Washington-based Centre for Strategic and International Studies.
Riyadh says ministers from Bahrain, Iran, Iraq, Italy, India, Kuwait, Mexico, Nigeria, Qatar and the United Arab Emirates will also attend the inauguration ceremony, along with Western oil company executives. China, Germany, Japan and Norway will also be represented.
By Ghaida Ghantous and Simon Webb
RIYADH (Reuters) - Global oil consumers and producers meet in Saudi Arabia on Saturday to discuss calls for greater transparency in oil markets and investment in production capacity to curb volatile crude prices.
Ministers from the United States, Britain and France, who have all demanded that oil producers ramp up production and open the books on their massive oilfields, will press their case at the meeting hosted by the world's biggest oil exporter.
"With increased knowledge about both what the consuming nations are consuming ... and what the supplying nations are supplying and what their commitment is, there will be increased stability in markets," U.S. Energy Secretary Sam Bodman said.
U.S. oil prices hit a record $70 a barrel in late August, prompting warnings they would hurt global economic growth, before easing to $56 on Friday.
A study released by the U.S. Congress's Joint Economic Committee said this week that OPEC producers -- of which Saudi Arabia is the biggest -- have kept their production levels down and pushed up crude prices.
Chancellor Gordon Brown and his French counterpart Thierry Breton, who are flying in for Saturday's talks, have both pressed OPEC to pump as much as possible and also to improve "visibility and predictability" on oil markets.
But producers blame a lack of global refining capacity for the spike. They have offered an extra 2 million barrels per day (bpd) and say they have had no takers.
Saudi Arabia's oil ministry said in a statement this week that producer concerns about high oil taxes in industrialised countries and the role of speculators driving up prices will also be on the agenda in Riyadh.
Bodman, who arrived in Saudi Arabia after talks in Kuwait, Qatar and the United Arab Emirates, said he was confident that Gulf producers would keep markets well supplied and that they would meet commitments to expand capacity.
Saudi Arabia plans to spend billions of dollars boosting output capacity by 1.5 million barrels per day (bpd) to 12.5 million bpd by 2009, and later to 15 million bpd.
OIL DATABASE
Discussions on the economic impact of oil prices, capacity expansion and market transparency will take place behind closed doors on Saturday.
Saudi Arabia's King Abdullah will then inaugurate an energy forum, which is designed to foster dialogue and exchange of information between producers and consumers.
To mark its inauguration, the International Energy Forum will release data it has been compiling from oil producer and consumer nations, part of its efforts to improve transparency.
But analysts question whether talks between the world's oil sellers and buyers will lead to any tangible results.
"The producer-consumer dialogue looks great on paper. It's a great concept. But it's almost impossible to translate ... into action," said Robert Ebel, energy program chairman at the Washington-based Centre for Strategic and International Studies.
Riyadh says ministers from Bahrain, Iran, Iraq, Italy, India, Kuwait, Mexico, Nigeria, Qatar and the United Arab Emirates will also attend the inauguration ceremony, along with Western oil company executives. China, Germany, Japan and Norway will also be represented.
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