Kingdom calls for meeting to address rising oil prices

June 9, 2008

Custodian of the Two Holy Mosques King Abdullah bin Abdulaziz chaired the weekly Cabinet meeting at Al-Salam Palace in Jeddah today.

On oil-related issues, the Cabinet said that market fundamentals do not justify the current increase in oil prices.

It has directed the Minister of Petroleum and Mineral Resources to call for a meeting soon to bring together representatives of oil producing and consuming nations and companies operating in oil production, exports and sales to look into the rise in prices, its cause, and how to deal with it objectively.

As a major producing country, Saudi Arabia realizes that there is sufficient supply and increasing commercial inventory, the Cabinet said.  Moreover, the Kingdom has increased production this month and informed all customers that it stands ready to provide additional supplies as needed.

The Cabinet noted that the Kingdom coordinates with Organization of Petroleum Exporting Countries (OPEC) countries and major producers to ensure adequate supply, and seeks to address unjustified increases in oil prices that may affect the global economy.

On other foreign policy matters, the Cabinet was briefed on King Abdullah’s meetings this past week with Palestinian Authority President Mahmoud Abbas and Pakistani Prime Minister Yusuf Raza Gilani, as well as Crown Prince Sultan’s recently concluded visit to Spain.

The Cabinet reiterated Saudi Arabia’s support for the Palestinians in their struggle to establish an independent state and emphasized the importance of unity.

It also welcomed the International Islamic Dialogue Conference held in Makkah this past week in response to King Abdullah’s call for interfaith dialogue.