The conference of oil producing and consuming countries was called by Saudi Arabia to discuss what it called an unjustifiable increase in oil prices, affecting economies around the world.

As many as 38 countries, four international organizations and 30 oil companies have agreed to attend the conference, which has received world attention as people across the globe think it would contribute to slashing prices.

British Prime Minister Gordon Brown, US Energy Secretary Sam Bodman, Secretary-General of the Organization of Petroleum Exporting Countries (OPEC) Abdullah Al-Badri, and ConocoPhilips Chief Executive James Mulva are among the likely participants.

The Saudi Council of Ministers expressed its satisfaction on Monday over the tremendous response to the Kingdom’s call for holding such a conference.

“Saudi Arabia’s hosting of the oil conference comes out of its positive role in international relations and its concern toward world economy and oil market stability and its desire for cooperation between oil producers and consumers,” the Cabinet said.

The call for the conference by oil giant Saudi Arabia and its plan to increase output by 200,000 barrels per day has already left its impact on the market. Oil prices fell further yesterday from record highs of almost $140 a day earlier.

New York’s main oil futures contract, light sweet crude for July delivery, slipped 43 cents to $134.41 per barrel in late afternoon European trading.

Brent North Sea crude for August delivery fell 94 cents to $133.72 yesterday, after setting a record high of $139.32 the previous day. World leaders fear runaway oil prices pose a threat to economic growth as higher inflation leads central banks to raise interest rates.

The energy conference will start in the morning with a discussion panel chaired by Prince Abdul Aziz bin Salman, assistant minister for petroleum affairs, with participation of the executive director of the International Energy Agency (IEA), secretary-general of OPEC and secretary-general of the International Energy Forum (IEF).

The panel will present a joint background paper on current oil market conditions. The ministers, company executives and other delegates will arrive at 1 p.m. at the conference venue. King Abdullah will deliver his speech at about 1.45 pm, according to the conference website.



Arabnews