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Saudi Arabian Minister says oil producing countries should be cautious with their statements

Oil&Gas Materials 5 January 2012 16:15 (UTC +04:00)
Oil producing countries should be cautious when making statements which could affect the world oil market, Al Jazeera quotes the Saudi Arabian Petroleum Minister Ali Al-Naimi as saying.
Saudi Arabian Minister says oil producing countries should be cautious with their statements

Azerbaijan, Baku, Jan. 5 /Trend A.Badalova, A. Tagiyeva/

Oil producing countries should be cautious when making statements which could affect the world oil market, Al Jazeera quotes the Saudi Arabian Petroleum Minister Ali Al-Naimi as saying.

Al-Naimi said every statement made by the oil producing countries has an either upward or downward effect on world oil prices.

"Iranian warnings to choke oil flow through the Strait of Hormuz have led to increase in world oil prices by $4 per barrel," Al-Naimi said.

The Strait of Hormuz which is located between Oman and Iran connects the Persian Gulf with the Gulf of Oman and the Arabian Sea.

Earlier Iran warned that in case Western threats of imposing an oil embargo on the Islamic Republic take effect, it reserves the right to respond by choking the oil flow through the Strait of Hormuz, arguing that the free flow of oil must be for all or for none.

The possible closure of the waterway would have serious consequences for the world economy as it would greatly reduce crude oil, petroleum and liquefied natural gas supplies.

Al-Naimi said at present Saudi Arabia's oil production amounts to 12.5 mln bpd. In November the country increased its production level in order to offset the shortage in the world supply market.

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