High oil prices to continue, Saudi king warns

HIGH PRICES: Oil prices would not ease even if production was raised because speculation and taxes are behind soaring costs, Saudi's king has said. (Getty Images)

Oil prices would not ease even if production were raised because speculation and taxes are behind the soaring market, Saudi Arabia's King Abdullah was quoted as saying in a Kuwaiti newspaper on Tuesday.

"People who think that oil prices will go down once production is raised are wrong because there are indications the prices will remain high," the Arab Times quoted the ruler of the world's largest oil exporter as saying.

He added that speculators and duties on fuel in some countries were among reasons for the high prices.

"Starting from the establishment of OPEC, we have always been keen on keeping the price of oil at a normal level to reduce the burden on both the producers and consumers...We have nothing to do with the rising prices of oil in the world," he said.

Saudi Oil Minister Ali al-Naimi said on Monday top exporter Saudi Arabia stands ready to pump as much oil as its customers require, but supply for now was adequate.

Riyadh has already promised to pump 9.7 million barrels per day (bpd) in July, marking an increase in output of 550,000 bpd since May.

The kingdom summoned the world's energy powers to an unprecedented meeting in Jeddah in June in response to record price moves. (Reuters)

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