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Saudis See No Reason To Boost Oil Production

From an approving Associated Press:

Saudis see no reason to raise oil production now

By JENNIFER LOVEN, Associated Press Writer

RIYADH, Saudi Arabia – Saudi Arabia’s leaders made clear Friday they see no reason to increase oil production until customers demand it, apparently rebuffing President Bush amid soaring U.S. gasoline prices.

It was Bush’s second personal appeal this year to King Abdullah, head of the monarchy that rules this desert kingdom that is a longtime prime U.S. ally and home to the world’s largest oil reserves. But Saudi officials stuck to their position that they will only pump more oil into the system when asked to by buyers, something they say is not happening now, the president’s national security adviser told reporters.

“Saudi Arabia does not have customers that are making requests for oil that they are not able to satisfy,” Stephen Hadley said on a day when oil prices topped $127 a barrel, continuing to set records. “What the Saudis wanted to tell us was we’re doing everything we can do … to meet this problem, but it’s a complicated problem.”

The Saudi oil minister, Ali al-Naimi, said the kingdom decided on May 10 to raise production by 300,000 barrels, at the request of customers, and that increase was sufficient.

“Supply and demand are in balance today,” he told a news conference. “How much does Saudi Arabia need to do to satisfy people who are questioning our oil practices and policies?”

Hadley also said the Saudis briefed Bush again on their plan to increase their production capacity over time. They also argued that even an increase would be unlikely to bring down the soaring prices, driven more by uncertainty in the market, lack of refining capacity for the type of oil readily available and other complicated dynamics, he said…

As a result, Hadley suggested the White House was satisfied with — or at least accepted — the Saudi response. He added, however, the Bush administration will see if the explanation “conforms to what our experts say.”

Saudi Foreign Minister Saud al-Faisal said the discussion with Bush about oil was friendly. “He didn’t punch any tables or shout at anybody,” the minister said. “I think he was satisfied.” …

When Bush and Abdullah met in the kingdom in mid-January, the president also sought more Saudi output in a plea that also ultimately was for naught…

Oh, and you are welcome for us saving your country in the first Gulf War. (Of which the current war is merely a continuation.)

In fact, you’re welcome for us finding the oil, getting out of the ground for you — and giving you all the money with which you fund terrorist indoctrination centers around the world.

As Tolstoy once wrote, “God sees, but waits.”

This article was posted by Steve on Friday, May 16th, 2008. Comments are currently closed.

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