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Saudi favours “moderate” oil prices: king

RIYADH - Oil powerhouse Saudi Arabia favours ”moderate” crude prices despite reaping a windfall from record highs on world markets, King Abdullah said in remarks published on Saturday.

“The kingdom’s petroleum policy is moderation in prices. Despite the benefits that the increase in prices brings us, we advocate moderation in oil prices,” he told the Saudi-owned pan-Arab daily Asharq Al Awsat.

“Petroleum production is plentiful. That’s why I am surprised by ... the unjustified rise in prices,” he said.

The Saudi monarch did not say what he would consider a moderate price.

Saudi Arabia, which produces around 9.5 million barrels of oil per day (bpd) and is the world’s top oil exporter, posted a record budget surplus of 57 billion dollars in 2005 on the back of surging crude prices and is channelling billions into development projects.

World oil prices rose slightly Friday as a tropical depression rolled across the Caribbean and edgy traders continued to follow diplomatic moves over Iran’s nuclear program.

New York’s main contract, light sweet crude for delivery in October, closed up 15 cents at 72.51 dollars per barrel.

In London, Brent North Sea crude for October delivery settled up two cents at 72.70 dollars per barrel.