“Mutual commitment” of developing countries “to cross-investment” in petroleum, natural gas, petrochemical and mineral sector projects is a “vital step in attaining energy security,” Saudi Arabian Oil Minister Ali Al-Naimi said at the Petrotech 2009 Special Ministerial Session in New Delhi, India on Wednesday. Citing the heightened level of strategic partnership between the Kingdom and India since the visit of King Abdullah, Custodian of the Two Holy Mosques, and in light of the present global developments, Al-Naimi said “such communication and cooperation are important for shared security and greater opportunity, but never more so than in challenging times.” In a copy of his speech sent to the Saudi Gazette, Al-Naimi noted “if there was any doubt anywhere that our world is intimately interconnected and interdependent, surely the global reach of the economic crisis has underscored this fact. Price volatility and its economic impact affect us all, and cooperation is vital for our collective energy future.” He said amid the “not completely avoidable … cyclical nature” of oil market volatility, working together would “ameliorate challenges and extremes.” The Saudi oil minister underlined the Kingdom's commitment to achieve a stable oil market by balancing the supply and demand both in the short and long terms. “Stability means oil prices maintained at a level that encourages investment, helping create a climate conducive for the development of all viable energy sources. Stability also is defined as a level providing a reasonable return to producing nations, and one that does not harm the global economy, and particularly does not hinder the prospects of developing economies.” He added though that in conjunction with stability, predictability is also essential for a successful market and energy industry, stressing that “it is best achieved through clear, transparent information and policy by both producers and consumers.” OPEC has drastically cut production to stabilize oil prices. Since September, OPEC has cut a total of 4.2 million barrels per day from its production to modify the fall in crude oil prices, which have plummeted by more than 70 percent in recent months or about $100 barrel since reaching the all-time high of $147.47 in July 11, 2008 “partially due to the cooperation of producers and consumers,” Al-Naimi said, which “demonstrates the ameliorating effects that can be achieved when stakeholders work together.” New York's main contract light sweet crude for delivery in February, shed 50 cents to $37.28 a barrel on the New York Mercantile Exchange on Wednesday. Brent North Sea crude for February recovered in late trading, gaining 25 cents to $45.08 on London's InterContinental Exchange. The US Department of Energy said Wednesday crude oil reserves rose 1.2 million barrels in the week ending Jan. 9. __
