Saudis reject supply fears but won’t increase output

Saudi Arabia and other Gulf producers have assured Asian countries their oil supply is secure at a recent meeting in Riyadh. But Middle East oil ministers attending warned they would not increase output to ease high prices.

“I would like to assure you that the importing Asian nations can depend on West Asia for future security and reliability of oil supply,” said Ali al-Naimi, Saudi Arabia’s oil minister.


Security of supply has caused concern for Asia, which imports much of its oil from the Middle East. Economic expansion in the region is feeding growing demand for crude from the Gulf.

“Given their heavy dependence on Middle East oil and gas, Asian countries do have reason for concern on many counts,” said David Butter, chief energy analyst for the Economist Intelligence Unit. “These include the perennial geopolitical tensions in the region, the persistently small margin of spare capacity over demand, and the strength of forecast demand from China and India.”

Arabian Business