Wednesday, June 25, 2008

Oil Market is Saturated

"Iranian president Mahmoud Ahmadinejad has dismissed calls for oil producers to ramp up production in response to high prices, saying the market is over saturated with more crude than it was consuming.

"I feel that oil prices are going up artificially. There is a game going on behind it," said Ahmadinejad in an interview with state television focused on his controversial handling of the economy.

"The market is now over saturated and oil is being pumped beyond consumption. Consumption growth is less than production," he said.

Iran, the No.2 producer in OPEC after the oil cartel's kingpin Saudi Arabia, has responded much more coolly than the kingdom to calls for producers to hike production in response to record prices.

Saudi Arabia's King Abdullah condemned oil "speculators" on Monday at a summit of leaders that debated the spiralling price of crude, which has doubled over the past year."

Oil market is saturated: Iran president