Saudi Arabia, the world's biggest crude oil producer, plays a large role in setting global oil prices, Exxon Mobil Corp Chief Executive Lee Raymond told a Senate panel on Wednesday.
Questioned by Senate Energy Committee Chairman Pete Domenici about how world crude oil prices are set, Raymond said Saudi Arabia's month-ahead process of offering its crude supplies to global refining customers is highly influential. "They basically say this is the price, and the alternative we have is to buy it or not buy it," Raymond said. "The prices they set for the forthcoming month are generally reflective of world market conditions as they see it."
Exxon produces less than 3 percent of world crude oil supplies, and the "big actors" are Russia, Middle East producers and members of the Opec cartel, Raymond said at a Senate hearing on high energy prices. It was unclear whether the hearing would lead to any new energy legislation, or simply be a vehicle for Republicans and Democrats to assure voters of their concern about high prices.
Also testifying were Chevron Corp, ConocoPhillips and the US units of BP Plc and Royal Dutch Shell Plc. The hearing opened with Republicans refusing a request by Democrats that the five executives take an oath before testifying.