From the Wall Street Journal….
The cost of gasoline has also become a sore point in the U.S. presidential race, with President Bush and Republican candidate John McCain calling for lifting of a long-standing ban on offshore oil and gas drilling to increase domestic oil production. But Democratic candidate Barack Obama has said such steps will do nothing in the short term to ease American consumer’s pain.
It was unclear if Oil Minister Ali al-Naimi’s remarks Sunday at a closed-door session during the high-level oil summit in the port city of Jiddah would quell concerns. (Previously PS reported his comments blaming speculation)
Mr. Naimi, who was expected to formally make the announcements in a speech later Sunday, reiterated his government’s position that the recent run-up in prices has not been caused by a supply shortage. But he said he also believes each country must do what it can “to alleviate these difficult conditions.”
For the remainder of the year “Saudi Arabia is willing to produce additional barrels of crude oil above and beyond the 9.7 million barrels per day which we plan to produce during the month of July, if demand for such quantities materializes and our customers tell us they are needed,” Mr. Naimi said in the speech, a copy of which was obtained by The Associated Press in advance.
The conference’s final statement restated the participants’ concern over volatile oil prices, but attempted to strike a balance over the cause. Producers, like Saudi Arabia say it is due to speculation. “There are several factors behind the unjustified, swift rise in oil prices and they are: speculators who play the market out of selfish interests, increased consumption by several developing economies and additional taxes on oil in several consuming countries,” the king said.
Abdullah urged the summit’s delegates to “uncover the truth” and dispel rumors to get the “real and full reasons” behind the skyrocketing price of oil.