The world's top energy producers, under pressure to meet global demand, called instead Saturday on leading consumer states, mainly in Europe, to cut taxes on oil to alleviate hikes in prices.
The Organisation of Petroleum Exporting Countries, which supplies about 40 percent of the world oil, and heavyweight member Saudi Arabia made the call at the opening of the permanent seat of the International Energy Forum in Riyadh.
Saudi King Abdullah, whose Gulf state holds the world's largest oil reserves, vowed to continue to provide "enough" oil supplies, but called on leading consumer states to cut taxes on petroleum products.
"The policy of the kingdom is based on reaching a reasonable and fair price for oil and to provide enough supplies to all the consumers," he said at the opening, which was accompanied by a forum on the energy industry.
"But all the efforts of the producing countries will not bear fruits if they are not met with a positive position by the main consumer states," he said.
"These states should alleviate the ordeal of their citizens by cutting taxes on petroleum products when prices increase," he said.
Opec chief and Kuwaiti Energy Minister Sheikh Ahmad Fahd al-Sabah also said "we will have many meetings and we will try" to seek tax cuts in consumer countries.
"This is a financial issue of their own, but everyone should know that in Europe, 80 percent of the price (of oil) is made up of taxes," he told reporters.
"They ask for an increase in production, and we ask for a cut in taxes ... which are one of the reasons for the hike in prices," he said.
The Opec chief also expected oil prices to rise again in the advent of a harsh winter in the northern hemisphere.
"If the winter is very cold and long, undoubtedly the prices will again go up," he said.
But he said "I don't think it will go over 70 (dollars)," he said on the sidelines of the opening of the forum.
The forum was first major gathering for world's energy consumers and producers after oil prices hit a historic high of 70.82 dollars a barrel on August 30, before retreating to around 57 dollars at present.
"The worst scenario now is that this (price) ceiling of 70 (dollars) is the highest ceiling" that prices would not cross, he said.
On his part, Qatari Energy Minister Abdullah bin Hamad al-Attiyah said Saturday the energy market may see increased oil supplies in the second quarter of 2006, possibly pushing down world prices.
"There will be more oil floating and this might be a concern, we have to deal with it very carefully," Attiyah told reporters.
"Now so far, if we keep the price as it is, it will be okay, but what will happen in the second quarter," when demand usually decreases due to the end of the winter season in the northern hemisphere.
Attiyah said Opec, which was meeting in Kuwait on December 12, was expected to study "important" issues, particularly energy demand.
"We have to tackle some issues, we should not be taken by surprise," he said.
The daylong closed session forum, meant to smooth out the volatility of the market and ensure stable prices, was attended by about 20 oil and economy ministers from the leading producing and consuming nations as well as executives of international oil majors.
Amid tight security measures, the forum also gathered energy and economy ministers of the United States, France, Britain, Germany, Mexico, Iraq, Iran and the United Arab Emirates.
Established in 1991, the IEF serves as a vehicle for dialogue between oil and gas producers and consumers on vital issues like energy prices, security and supplies as well as technological and environmental issues.
US Energy Secretary Samuel Bodman, who is currently on a visit in Riyadh as part of a four-nation tour to the oil-rich Gulf region, said on Friday it will take oil producers at least two years to provide enough oil that would ease concerns in the market.
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