Monday, March 24, 2008

Saudi Arabia Pledges to Meet Global Crude Oil Demand

Saudi Arabia, the world's biggest oil exporter, said it will ensure international markets are adequately supplied with crude to support the continued growth of the global economy.

The Supreme Council of Petroleum and Mineral Affairs, chaired by King Abdullah, agreed to work with the Organization of Petroleum Exporting Countries and non-OPEC countries to ensure oil market stability and ``prevent the effects of harmful speculation,'' the government body said in a statement posted late yesterday on the Web site of the state news agency.

The meeting was held one day after U.S. Vice President Dick Cheney met with the Saudi King. U.S. crude prices are likely to fall toward $90 this spring as the country's slowing economic growth encourages traders to exit commodity markets, Goldman Sachs Group Inc. said in a report on March 20.

Crude oil fell for a third day in New York on concern the slowing U.S. economy will cut consumption and the dollar's gain will reduce demand for commodities as a hedge against inflation. Crude for May delivery traded at $100.16 a barrel at 12:30 p.m. Singapore time. Futures are still up 59 percent in the past year.

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