Saudi denies to eye hike in oil prices

RIYADH - Agence France-Presse

Saudi Arabian officials say that fluctuations in oil production are normal.

The world’s biggest oil exporter Saudi Arabia denied on Jan. 14 that a five percent cut in its crude output was aimed at boosting prices on international markets.

The fluctuations in production depend on domestic demand, which is seasonal in nature as it peaked in the summer before declining during the last quarter of the year, oil ministry adviser Ibrahim Mehanna told. He said it was totally wrong to link the fall in Saudi oil output to an attempt to raise prices, stating that several challenges to growth in the eurozone and fears about the U.S. crisis have affected the demand. Mehanna stated that Riyadh was fully prepared to respond to these changes and reaffirmed its commitment to meet the demands of its customers. Oil prices rose on Jan. 14 after the completion of a major U.S. pipeline expansion project that will cut oversupplied inventories in the U.S., the world’s biggest consumer.