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Jeddah: Saudi Arabia, the world's top oil exporter, is willing to pump more oil to alleviate rising prices, although the market has enough oil, Saudi Oil Minister Ali Al Naimi said on Sunday.
"I am convinced that the supply and demand balances and crude oil production levels are not the primary drivers of the current market situation and that markets are already well-supplied," Naimi said in a speech at the Jeddah Energy Summit.
"But... I also strongly believe that each of us must do what we can to alleviate these difficult conditions".
Saudi Arabia's King Abdullah opened the summit on Sunday by proposing a plan to help poor countries cope with the high price of fuel.
Under the plan, a $1 billion Opec fund would be set up along with $500 million in Saudi soft loans.
King Abdullah said Saudi Arabia was willing to provide all necessary oil supplies needed in future and blamed high oil prices on speculation and taxes. He called for the World Bank to arrange an international meeting to discuss the poor-country initiative.
He also announced Sunday that his country has increased output to 9.7 million barrels a day, adding that his country was willing to supply any necessary need in the future.
British Prime Minister Gordon Brown unveiled plans of a "new deal" opening energy markets to foreign investors.
Britain will work with Saudi Arabia on technology to capture carbon emissions from energy plants and with the United Arab Emirates on nuclear technology.
Opec members and worldwide oil ministers are convening in Jeddah on Sunday to attend an oil summit to tackle rising oil prices.
Ahead of the summit, Qatar’s Oil Minister Abdullah Al Attiyah told reporters the world market was well supplied with crude and near record-high oil prices were the result of speculation.
"There is enough oil in the market," he said. "Prices are being driven by speculation."
Opec President Chakib Khelil said that Opec members should wait until September to make any changes in current output levels as supply was sufficient as of now.
Speaking on the sidelines of the summit, Khelil told Al Arabiya television, “We have to wait until September and take our decision there (Opec ministers meeting).”
He also stressed that the Jeddah meet was not an Opec meeting and they were only here to discuss how to control oil prices.
India’s oil minister said the talks will be followed by a second meeting in London to be held in October.
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