King Abdullah satisfied with oil price

Sunday, December 27, 2009
RIYADH: Saudi king Abdullah described oil prices as satisfactory in an interview published on Saturday, at a time when the largest OPEC producer is seeking price stability. “We predicted an oil price of 75 to 80 dollars per barrel at the beginning of the year, what we considered acceptable, and now it has reached this level,” the king told the Kuwaiti newspaper Al-Siyassah. “(We expect) the price will stabilise or increase marginally,” he added.

King Abdullah also expressed confidence in the state of the Saudi economy, which he said had successfully managed to withstand the global financial crisis. “The effects of the crisis have not caused people to panic. Our sovereign wealth funds have not been affected and we are maintaining a rate of growth that is lower but remains positive,” he said. “We have experienced sustained economic activity, GDP is growing and inflation has slowed,” said the king, whose country adopted a budget for 2010 that forecasts an 18.7-billion-dollar deficit but provides for record-high government spending of 144 billion dollars