Market stability needed say Kuwait, Saudi ministers

Kuwaiti Oil Minister Sheikh Saud Nasser al Sabah said there is complete coordination between Saudi Arabia and Kuwait concerning the oil market. In Riyadh to discuss offshore boundaries, Al Sabah said both countries agree on the need to maintain market stability and to strike a balance between supply and demand.


RIYADH�Kuwaiti Oil Minister Sheikh Saud Nasser al Sabah said there is complete coordination between Saudi Arabia and Kuwait concerning the oil market.

Quoted by the Kuwaiti news agency before meeting his Saudi Arabian counterpart Tuesday, Ali I. Naimi, to discuss the demarcation of offshore boundaries, Al Sabah said both countries agree on the need to maintain market stability and to strike a balance between supply and demand.

Kuwait and Saudi Arabia are committed to the mechanism worked out by Organization of Petroleum Exporting Countries to maintain the price of the OPEC basket of crude oils between $22 and $28/bbl, he pointed out. The minister said the situation needs further monitoring and study. The next step will be taken at OPEC's extraordinary ministerial meeting June 21 in Vienna.

"We agree with the position of Saudi Arabia and other OPEC countries concerning the need to maintain market stability," he said. "We do not wish to see high prices that harm world economies and create economic shocks.

"Neither do we wish to see prices decline again, affecting the economies of producing countries, as was the case in 1997 and 1998."

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