The current rise in oil prices is a result of various factors including lack of advanced refining capacity, and is not the result of any shortage in crude supply. This was indicated in a statement made by the High Council for Oil and Mineral Affairs, Saudi Arabia. The council has also expressed satisfaction over the balance of supply and demand in oil with the rise in world crude stocks to unprecedented levels.
Whilst spelling out the Kingdom's oil policy over the next year, the council also said Saudi Arabia, wants a stable oil market in the short and long term and would increase production capacity gradually in accordance with rising global demand, by increasing domestic and foreign-based refining capacity.
Oil prices have been hovering between US$70-72 over the past weeks. Despite the high prices, no negative impact has been felt on global growth and that initiatives by oil producing states would stabilise the market sooner or later.
03-Jul-06 
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