Minister of Petroleum and Mineral Resources Ali Al-Naimi called for enhanced cooperation between oil producers and consumers during a speech today at the Petrotech 2009 Special Ministerial Session in New Delhi, India.
Al-Naimi noted that the declining price of oil – down 70 percent since July – will play a major role in aiding global economic recovery.
"This price decline is partially due to the cooperation of producers and consumers, and as such demonstrates the ameliorating effects that can be achieved when stakeholders work together," explained Al-Naimi. "This collaboration, combined with the Kingdom’s moderate price policy, aided price moderation for a short period."
However, Al-Naimi continued, the worldwide economic downturn has now pushed the price of crude to a level that is too low and does not reflect market fundamentals.
"It is important to emphasize our goal of a stable oil market," he said. "Stability means oil prices maintained at a level that encourages investment, helping create a climate conducive for the development of all viable energy sources. Stability also is defined as a level providing a reasonable return to producing nations, and one that does not harm the global economy."
During his speech, Al-Naimi also discussed the Saudi-Indian relationship and the growing economic power of Asia.