Quit complaining and get used to high prices - King Abdullah
KUWAIT CITY (AFP) — King Abdullah of Saudi Arabia, whose nation is the world’s number one oil exporter, called on consumer countries to get used to high prices in comments published on Tuesday.
“Consumer countries have to adapt to the prices and the mechanisms of the market,” the king said in an interview published by the Kuwaiti daily Al-Siyassah.
“We have nothing to do with the current sharp increase in crude prices,” he said reiterating the Saudi position that speculation, rising demand and the taxation of oil products in consumer countries were to blame.
“These countries must reduce their taxes on fuel.. if they want to contribute to easing the burden on ordinary consumers,” he said.
Summary
- Claims that Saudi’s have nothing to do with price escalation blames speculation, rising demand and the taxation of oil products.
- OPEC president Chakib Khelil said there was uncertainty surrounding future investment in facilities to boost crude output.
- International Energy Agency (IEA) said growth in supply would outpace demand until 2010, after which the market would likely experience supply tensions.
- IEA report published on Tuesday also disagreed with the Saudi view that speculation was behind skyrocketing prices.
- “Blaming speculation is an easy solution which avoids taking the necessary steps to improve supply-side access and investment or to implement measures to improve energy efficiency.” - IEA
- Abdullah reasserts that the Gulf has “enough oil resources to satisfy demand.”
