Business | Oil & Gas

Saudi Arabia expresses concern over high oil prices

The world's top oil exporter Saudi Arabia has expressed concern over the rising price of oil, but reiterated its position that the increase is not fuelled by supply constraints.

  • Agencies
  • Published: 14:44 July 3, 2008
  • Gulf News

  • Saudi Arabia's Oil Minister Ali Al Naimi.
  • Image Credit: EPA

Madrid: The world's top oil exporter Saudi Arabia has expressed concern over the rising price of oil, but reiterated its position that the increase is not fuelled by supply constraints.

Saudi Arabia's Oil Minister Ali Al Naimi said on Thursday the kingdom was concerned about high oil prices.

"We are concerned about the level it (oil price) is at today. There is no supply constraint in today's market," Naimi said at the World Petroleum Congress in Madrid.

Oil prices surpassed $145 a barrel in US crude with London hitting over $146, supporting wide expectations that it could soon cross the $150 barrier.

Investment bank Morgan Stanley speculated that crude might reach $150 by July 4 - the US Independence Day holiday - because of robust Asian demand and falling inventories.

Al Naimi said the escalation was stoked by a large flow of financial money, a weak US dollar, geopolitics, fear the world is running out of fossil fuels and natural disasters.

"Now when you combine all of these and try to figure out what the price will do it will be a difficult task for anybody."

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