Abdullah Tells Ban Ki-Moon Saudi Arabia Willing to Act to Bring Oil Prices Down

King, Ban discuss key issues

P.K. Abdul Ghafour, Arab News  

JEDDAH, June 15, 2008

 

Custodian of the Two Holy Mosques King Abdullah held talks here yesterday with UN Secretary-General Ban Ki-moon on major regional and international issues, including rising oil prices and the Middle East peace process.

“The talks focused on the latest regional and international developments, most importantly those relating to the Palestinian issue and the Middle East peace process, as well as the situation in Iraq, Lebanon and Sudan,” the Saudi Press Agency said.

Ban, who is on his second visit to the Kingdom since March 2007, also briefed the king on the United Nations’ efforts to find solutions to regional conflicts and crises.

He thanked King Abdullah for his contributions to UN aid projects, including a $500 million donation to the UN World Food Program to battle global food price problems. He also lauded the king for striving to help settle the Israeli-Palestinian conflict and the Lebanon crisis, and for an initiative to foster dialogue among Muslims, Christians and Jews.

King Abdullah, on his part, commended the United Nations for working to establish peace and security across the world. The UN chief’s visit follows Saudi Arabia’s announcement to host a conference of oil producing and consuming countries to discuss what it called an unjustifiable rise in oil prices.

Speaking to reporters in London earlier, Ban said the jump in oil prices was “a serious concern” to all.

“We need to address and then cope with rising food prices as well as rising oil prices, because, unless we properly manage these issues, this may create a cascade of all other challenges and prices, affecting not only social and economic (conditions) but also creating political instability,” Ban said.

He added that he looked forward to the oil conference, which is to be held on June 22 in Jeddah. Representatives of 38 countries, four international organizations and 30 oil companies are expected to take part in the conference.

Saudis willing to act to bring oil prices down: UN

Khaleej Times, (AFP) 15 June 2008

JEDDAH, Saudi Arabia -

 

OPEC powerhouse Saudi Arabia views skyrocketing oil prices as ‘abnormally high’ and is willing to do what it can to bring them down, visiting UN chief Ban Ki-moon said on Sunday.

Briefing reporters on his meeting with Saudi King Abdullah on Saturday, Ban said they spent a great deal of time focusing on the link between the soaring crude prices and the worsening food crisis as well as climate change.

‘He acknowleged that the current oil prices are abormally high due to speculative factors and some other national government policies,’ the UN secretary general said before ending a 24-hour visit in the Red Sea city of Jeddah.

‘He is willing to what he can to (bring) the price of oil to adequate levels.’

Ban said the Saudis, whose desert kingdom is the largest oil producer in OPEC, ‘seem to be considering very seriously how they can address this issue by increasing production.’

‘I expect that they will take some concrete measures,’ said Ban.

Media reports have suggested Riyadh plans to raise output next month by about half a million barrels a day to 10 million barrels, a possible sign it is becoming nervous about the political and economic effect of high prices.

Saudi Arabia is also hosting a summit in Jeddah on June 22 for consumer and producers to discuss oil prices, which struck a record high of nearly 140 dollars a barrel earlier this month, stoking fears of surging global inflation and weaker economic growth.

Ban expressed hope the Jeddah meeting would yield a productive outcome.

While reaping record profits, the Saudis are concerned record prices might dampen economic growth and lead to lower oil demand, as is the case in the United States and other developed countries, according to The New York Times.

It said the high prices are also making alternative fuels more viable, threatening the long-term prospects of the oil-based economy of Saudi Arabia, which is currently pumping 9.45 million barrels a day.

OPEC on Friday cut its 2008 estimate of growth in world oil demand, as the high prices and slower economic growth put a brake on demand in major industrialised countries, the United States in particular.

Global oil demand was now projected to rise by 1.28 percent in 2008, it said in its June monthly report.

Oil prices fell back on Friday to just under 135 dollars a barrel.

The UN chief also said he conveyed to the king the concern expressed by several world leaders, notably at the Rome food summit earlier this month, about the impact of soaring oil prices on global food security.

‘I am confident that he shares this concern,’ Ban said, although he noted that King Abdullah felt that other factors were behind the surge in food prices.

Ban said he stressed to the king that the high food prices were placing a heavy burden on the least developing countries, which in turn affected their ablity to implement the poverty-reduction Millenium Development Goals.

Ban said he also commended the king for his initiative to invest in other developing countries to boost agriculture productivity and encouraged other countries to do the same.

The UN chief also discussed a Saudi initiative to promote inter-faith dialogue, adding that King Abdullah told him he would be convening another inter-religious meeting at which Hindus and Buddhists would be invited.

‘I warmly welcome such initiative,’ said Ban.

Leading Islamic scholars met in Saudi Arabia earlier this month and proposed creating a centre that would promote relations among different religions.

Abdullah had proposed in March talks among the three largest monotheistic religions in a first for the ultra-conservative Muslim kingdom, which is home to two of the three holiest shrines in Islam.

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