Apparently relieved by climbing crude oil prices, Saudi Arabian Oil Minister Ali Naimi told the Wall Street Journal in an interview Sunday that if oil prices hold there will be no need for further production cuts when OPEC meets March 15. But neither would he be surprised to see a different 
situation than what he sees now. He confirmed that Saudi Arabia's current production is 8.5-8.6 million barrels/day, down 1m from its output 1/2 year ago, and double the cutbacks it agreed to under OPEC meetings in October and December. OPEC members supply about 40% of the world's oil. Naimi said Saudi Arabia still plans to increase its capacity to 12.5mbd from 11.3mbd by end-2009, saying the would will need all the energy it can generate over the next 30 years, including alternative sources. He conceded that geopolitical tensions and terrorism were serious threats to oil stability, but added that despite many wars the flow of oil has never been interrupted. Russian President Putin is slated to arrive in Saudi Arabia today, the first-ever visit of a Russian leader. "Energy will be a subject," Naimi said of the visit, "but not the subject."
Sources: Wall Street Journal
Commentary: Barron's: Oil Guru Art Smith's Picks for 2007 • Oil Move Overzealous, But That's the Way the Barrel Rolls • Crude's Downtrend Remains Intact
ETFs to watch: United States Oil Fund ETF (USO), Oil Service HOLDRs ETF (OIH)
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