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Saturday, January 10, 2009

Saudis reject oil embargo on Israel

OPEC's top producer says oil-producing states in the Middle East will not respond to Iran's call to halt crude supplies to Israeli supporters. 

"The oil producers who need their income ... are not going to do that," Saudi Foreign Minister Prince Saud Al-Faisal said at a Wednesday news conference. 

"The use of oil, especially at this time, is an idea that is at least past its worth," he said. "The important thing, oil is not a weapon. You can't reverse a conflict by using oil." 

A senior Iranian commander had earlier in the week urged Muslim countries to cut oil exports to countries supporting Israel and the atrocities it comits in Gaza. 

"Oil is among major stimuli that can put pressure on Zionist regime's (Israel) supporters in the US and Europe," Brigadier General Mir-Faisal Baqerzadeh, Head of the Foundation for the Remembrance of the Holy Defense, said earlier on Sunday. 

The Saudi prince said the idea of cutting oil production would only put pressure on oil-producing states causing them to "suffer as much as anybody else suffers." 

The Saudi prince's remarks come amid dramatic slides in crude prices. 

Oil prices have lost more than $100 since hitting a record high of above $147 a barrel in July. The global financial turmoil, brought on by the US subprime-mortgage crisis has sharply slashed the demand for oil. 

Earlier in December, the Organization of the Petroleum Exporting Countries (OPEC) agreed to remove up to 2.2 million barrels of oil from the market to counter declining demand and the four-month plunge in prices. The slashing came on top of existing reductions of 2 million barrels per day agreed by the group in October and September. 

The oil producers "need their abilities to build their countries from this resource (oil)," Prince Saud said. 

"If they are going to make themselves ready to face any actions against them, they need that resource to build their capabilities," he argued. 

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