RIYADH, Saudi Arabia, June 15, 2008
Saudis To Increase Summer Oil Production
CBS News Learns World's Largest Producer Will Raise Output, But Pump Prices May Not Be Curtailed
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Play CBS Video Video Saudis Aim To Lower Gas Prices Officials from Saudi Arabia, the world's largest oil exporter, have hinted that they may increase production in order to lower rising prices at the pump. Sheila MacVicar reports from London.
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Video Saudi Arabia To Increase Oil Production King Abdullah of Saudi Arabia has announced to U.N. Secretary General Ban Ki-Moon that the country plans to increase its oil production. CBS News Foreign Affairs Analyst Pam Falk discusses the announcement and weighs in.
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Interactive Eye On Energy Explore the production and consumption of energy in the U.S. Find out more about energy costs, and the use of fossil fuels, nuclear power and renewable energy sources.
Reports that the world's largest oil-producing country is about to announce an increase in production were confirmed by the United Nations Secretary-General.
Speaking to CBS News Foreign Affairs Analyst Pamela Falk, Secretary-General Ban Ki-moon said on Sunday that the Saudi oil minister confirmed to him that the government will increase its oil production to 9.7 million barrels a day, with a cumulative increase of 500,000 barrels over the course of June and July, a slight clarification of earlier news reports.
The new production figures, Falk said, would actually represent an increase of 300,000 barrels a day in June, and 200,000 in July.
Reports this weekend by The New York Times and the Middle East Economic Survey, an industry publication, had said Saudi Arabia's oil production would be increased to 10 million barrels a day, the country's highest ever.
Adviser Ibrahim al-Muhanna told The Associated Press on Saturday that he could not confirm the reports, but added: "Minister Ali al-Naimi will clarify this tomorrow."
The Secretary-General met with the Saudi King, Abdullah Bin Abdulaziz, to urge him to address the political instability that results from rising oil prices and, after the meeting, he expressed optimism about the opportunities that the Saudi government is considering to address the problem, reports Falk.
"An oil production increase by the Saudi government may not significantly bring down prices at the pump," said Falk, "but it will ease the rising cost at least temporarily, and lessen some of the U.S. Congress' angry response, including threats to block U.S. arms sales."
"Within the region, it may be more diplomatic for the Saudi government to increase production after discussions with the U.N. than to respond to Bush administration overtures, which it has rebuffed," Falk added.
Saudi Arabia has called for a meeting of oil producing and consuming countries on June 22 in the port city of Jiddah to discuss ways of dealing with soaring energy prices.
The New York Times report on Saturday, citing unnamed analysts and oil traders briefed by Saudi officials, said the production increase was to be announced following the meeting.
The Middle East Economic Survey said Friday that Saudi Arabia was considering a production increase, but did not provide a source.
The Saudis are concerned that sustained high oil prices will eventually slacken the world's appetite for oil, affecting them in the long run.
Crude prices have reached record highs, surpassing $139 per barrel on June 6 after surging nearly $11 in the biggest single-day price leap ever.
The prices had receded by Friday, with the benchmark light, sweet crude for July delivery falling $1.88 to settle at $134.86 on the New York Mercantile Exchange. In London, July Brent crude lost $1.84 to settle at $134.25 on the ICE Futures exchange.
Meanwhile, the average national price for a gallon of regular gas in the U.S. rose to a record $4.066 Friday, from $4.06 a day earlier, according to AAA and the Oil Price Information Service. Diesel also set a new record, rising 0.2 cents to $4.796 a gallon.
Even with record highs in the U.S., prices remain far cheaper than in Europe and some parts of Asia. Oil-related protests have swept Europe, with fishermen staging strikes in Spain, Portugal, France, Belgium and Italy. Several Asian countries, including India, Indonesia and Malaysia, have slashed fuel subsidies, raising prices for millions of consumers and sparking demonstrations.
Wrapping up a summit in Japan on Saturday, finance ministers from the Group of Eight nations - Britain, Canada, France, Germany, Italy, Japan, Russia and the U.S. - urged oil-producing nations to increase production.
The current president of the Organization of Petroleum Exporting Countries, Chakib Khelil, has said that the cartel will make no new decision on production levels until its Sept. 9 meeting in Vienna. OPEC ministers often follow the lead of the Saudis when discussing whether to increase production to take the pressure off rising prices.
© MMVIII, CBS Interactive Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.
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See all 380 Commentsthe geneva convention does not say anything about habeus corpus nancy,,,
I like the way you think.
They kill every chance to supply our own oil and then cry about high prices.
At least McCain understands this about economics.
OPEC sells oil for $136.00 a barrel.
OPEC nations buy U.S. grain at $7.00 a bushel.
Solution: Sell grain for $136.00 a bushel to OPEC nations.
Can''''t buy it? Tough! Eat your oil!
Ought to go well with a nice thick grilled filet of camel butt!!!
Posted by JoeCoolSwat at 12:22 PM : Jun 16, 2008
Hey, Joe - can I use your logic, and point out that your were born a filthy heathen?
And so you remained - until you were baptised.
Assuming you were baptised, of course.
"as he quit weeks ago, after 20 years of soaking up American and White hate"
Your nazi neocon king boosh has been kissing and holding hands with the muslims for longer than Obama has been alive.
Not to mention, the boosh''s have made their fortunes how? Oh ya, raping profits off oil with the muslims. Oops, your''e a hypocrit...yet again.
Yes,very misinformed indeed, but sometimes, I believe that they have all the information, but pick and choose which bits of info will suit their liberal agendas and ignore the facts that don''t support their liberal ideology.
Does that answer your question?
OPEC sells oil for $136.00 a barrel.
OPEC nations buy U.S. grain at $7.00 a bushel.
Solution: Sell grain for $136.00 a bushel to OPEC nations.
Can''t buy it? Tough! Eat your oil!
Ought to go well with a nice thick grilled filet of camel butt!!!
Posted by JoeCoolSwat at 11:13 AM : Jun 16, 2008"
Obama was never a Muslim and you know that. His parents were atheists, his step father was Muslim, he attended a public school that included Muslims and Christians and his only claimed affiliation to any religion is Christian. Why do you have to support your attacks with falsehoods, I thought you were smarter than that.
Posted by terrorislami at 08:21 AM : Jun 16, 2008"
Uh yes they are, all combatants are covered by the Geneva convention which specifically authorizes habeas corpus. We are a signatory to the Geneva conventions which makes the rules contained therein part of US law. There was never a term "enemy combatant" until G.W. Bush created it.
Of the 750+ "enemy combatants" that were in Guantanamo Bay, we have released over 500. Why would the Government be releasing "terrorists" when they have not even gone before a tribunal unless they were shown to be of no threat.
The claims that allowing prisoners the right of habeas corpus, a right granted by every civilized nation for over 300 years, will result in cities being destroyed is simply a lie. Allowing Habeas does nothing but allow those charged with a crime to actually have a trial to prove they did something wrong. If the Government can''t even meet the minimal requirement of charging them with a crime then they obviously should never have been incarcerated in the fist place.
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Where I live you see those vehicles for sale on every corner as people can no longer afford them. Oh well.
--To little to late
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