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UN chief sees Saudis move on oil Saudi oil output to rise in July
(about 8 hours later)
UN Secretary-General Ban Ki-moon says major oil producer Saudi Arabia views current prices as "abnormally high". Saudi Arabia will increase its oil production by 200,000 barrels a day next month in a move to meet growing world demand, the United Nations says.
He also said that the country, the leading producer in the Opec cartel of oil output nations, is willing to take action to bring prices down. The news was announced after UN Secretary General Ban Ki-Moon met Saudi Oil Minister Ali al-Naimi in Jeddah for talks on the high oil price.
Mr Ban was speaking after a meeting with the Saudi monarch, King Abdullah. Last month, the Kingdom increased its production by 300,000 barrels a day.
Oil prices fell on Friday after reports that Saudi Arabia might boost oil production. US light, sweet crude was trading at $134.86 in New York. The country is thought to be the only oil producer with the ability to pump substantially more crude.
'Adequate levels' It argues that the current high prices are caused by speculators rather than any shortage of crude oil.
Speaking after the weekend talks in Jeddah, Mr Ban said: "He [King Abdullah] acknowledged that the current oil prices are abnormally high due to speculative factors and some other national government policies. Oil prices fell by almost $2 on Friday after reports that Saudi Arabia might boost oil production. US light, sweet crude was trading at $134.86 in New York.
'Speculative factors'
After an earlier meeting with the Kingdom's King Abdullah, Mr Ban said Saudi Arabia, the world's biggest oil producer, viewed current prices as "abnormally high".
Mr Ban has held talks with King Abdullah about soaring oil prices
"He [King Abdullah] acknowledged that the current oil prices are abnormally high due to speculative factors and some other national government policies," Mr Ban said.
"He is willing to what he can to [bring] the price of oil to adequate levels.""He is willing to what he can to [bring] the price of oil to adequate levels."
And he added that the Saudis, who appear poised to take "concrete measures", also seemed "to be considering very seriously how they can address this issue by increasing production".
On Friday, the Saudi oil minister said current elevated oil prices - which hit a record high of more than $139 (£71) a barrel last week - were unjustified.On Friday, the Saudi oil minister said current elevated oil prices - which hit a record high of more than $139 (£71) a barrel last week - were unjustified.
Oil minister Ali al-Naimi said a meeting of oil exporters and importers to be held in Jeddah later this month would seek a solution to the unprecedented high prices, the Saudi state news agency said.Oil minister Ali al-Naimi said a meeting of oil exporters and importers to be held in Jeddah later this month would seek a solution to the unprecedented high prices, the Saudi state news agency said.
It has been predicted in some reports that the Saudis plan to raise output next month by about half a million barrels a day, to 10 million barrels. The Kingdom is hosting an international gathering of oil producers and consumers in a week's time.