Saudi King Pledges Global 'Stability' in Oil Markets at G-20
By Timothy R. Homan
Nov. 15 (Bloomberg) -- Saudi Arabia will help alleviate global financial stress by maintaining stable oil markets and boost its own economy by funding infrastructure projects, King Abdullah said in Washington.
"We will continue to fulfill our role in ensuring the stability of the oil market," Abdullah said today in a statement after a five-hour summit with the Group of 20 leaders. "We will continue the program for government investment in spending on basic projects and services."
Abdullah said he expects infrastructure spending "for the government and oil sectors to exceed $400 billion over the next five years."
The world leaders agreed that more action must be taken to shore up the global economy while improving regulation of financial markets, according to a statement released by the White House after the meeting. Nations should act individually "as deemed appropriate" to deal with domestic economic concerns.
OPEC decided on Nov. 13 to meet in Cairo at the end of the month for its third meeting in as many months as oil prices fell to a 21-month low. The group announced a reduction of 1.5 million barrels a day on Oct. 24, after a September agreement to pare excess supplies by observing official output quotas.
"Saudi Arabia has made many sacrifices, including maintaining costly additional productive capacity amounting to about 2 million barrels per day," Abdullah said in today's statement.
G-20 members are Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, South Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, the U.S., the U.K. and the European Union.
The Netherlands and Spain are also represented, as are the IMF, World Bank, the Financial Stability Forum and United Nations.
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