WASHINGTON, 16 August 2004 — Prince Bandar ibn Sultan, the Kingdom’s ambassador to the United States, has dismissed allegations that Saudi Arabia’s decision to increase oil output was an effort to bolster re-election chances of President George W. Bush in November.
“There is no ‘secret plan’ to help the Bush administration,” Bandar wrote in the Washington Post yesterday, responding to accusations by “some politicians and media commentators.”
Saudi Arabia announced on Wednesday that it was ready to increase oil output by 1.3 million barrels per day (bpd) immediately to cope with world demand and curb soaring prices.
“The Kingdom is well prepared to meet all the requirements of the international oil companies if they need additional volumes, relying on its surplus production capacity of more than 1.3 million barrels daily, which could be used immediately if required,” the Saudi Press Agency quoted Minister of Petroleum and Mineral Resources Ali Al-Naimi as saying in Riyadh.
Naimi stressed the determination of his country and the Organization of Petroleum Exporting Countries (OPEC) to prevent soaring oil prices from damaging the world economy. He said Riyadh was keen to “avoid any shortage of oil supplies in the world oil market, provide enough oil supply as needed and prevent soaring prices that may impact the growth of global economies, especially in developing countries.”
Prince Bandar wrote that Saudi Arabia’s stated willingness to increase oil production by extra 1.3 million barrels per day was an attempt — driven in large part by self-interest — to stabilize skyrocketing global oil prices.
“Saudi Arabia not only is part of the global economy, but is particularly vulnerable to economic repercussions stemming from ruinous and high oil prices,” Bandar wrote.
“To put it very simply, anything that depresses the economic viability of our customers rebounds doubly on Saudi Arabia,” his commentary continued.
He wrote that the Kingdom found itself in a no-win situation deciding whether to intervene to slow rising oil prices.
“If Saudi Arabia stayed on the sidelines and did nothing to try to reduce oil prices, we would be criticized for hurting the US and global economies,” he wrote in The Post.
“But when we take proactive steps to help customers — as we are doing now — we are accused in some quarters of playing politics.”
Bandar added: “Saudi Arabia has, without regard to politics, consistently sought to ensure stable oil prices for the United States and the world as a simple matter of good business, abiding friendship and national self-interest.”
