Saudi Arabia's King Abdullah said on Sunday that the oil giant would maintain its moderate policies which had helped limit the damage of the global financial crisis. "The kingdom has continued to be moderate in its approach to the global oil situation," Abdullah said in his annual address to the Shura Council, the country's consultative assembly.
Saudi Arabia "sought in the wake of the global financial and economic crisis to minimise the impact of the crisis on the stability of oil markets and on the interests of producing and consuming countries alike," he said. "We will continue to follow the approach of moderation and maintain the wealth God endowed us with," Abdullah added. The statement from the Saudi king comes amid rising concern that US-led sanctions against Iran over its controversial nuclear programme could disrupt the global oil markets.
With Saudi production hovering at around nine million barrels a day, Saudi Arabia is by far the OPEC cartel's largest oil supplier and the key swing producer, adding or reducing output to moderate sharp swings in the market. But when the financial crisis broke out, prices shot up to nearly 150 dollars a barrel in July 2008 before plummeting to below 40 dollars a barrel in January 2009.
Oil prices have hovered in the 70-80 dollars a barrel range since July 2009, with New York's main contract, light sweet crude for delivery in April, closing at 81.50 dollars a barrel on Friday.