Oil falls on Saudi statements assuring increases in supply

Oil fell $1 toward $100 a barrel on Monday, as funds sought to lock in more first-quarter profits and the top exporter, Saudi Arabia, reassured consumers of its plans to increase supply in the coming years.

Saudi Arabia said Sunday that it was working to expand its oil production and refinery capacity in order to maintain world economic growth, reaffirming its vow to invest tens of billions of dollars in new wells and infrastructure.
“The kingdom will work with OPEC countries, other producers and consuming countries toward oil market stability and to avoid the effects of harmful speculation,” the Supreme Council of Petroleum and Mineral Affairs said in a statement after a visit by Vice President Dick Cheney.

On Monday, Cheney, who had met King Abdullah of Saudi Arabia, said the kingdom had kept its promise to increase oil production capacity over the past three years.

Washington has said that it wants Saudi Arabia to help raise production by the Organization of Petroleum Exporting Countries to ease prices, but OPEC has resisted pumping more crude because of fears of weakening demand.

International Herald Tribune