Identifier
Created
Classification
Origin
08RIYADH918
2008-06-10 14:31:00
CONFIDENTIAL
Embassy Riyadh
Cable title:
SAUDIS ANNOUNCE EMERGENCY OIL MEETING
how-toVZCZCXRO5540 PP RUEHDE RUEHDIR DE RUEHRH #0918 1621431 ZNY CCCCC ZZH P 101431Z JUN 08 FM AMEMBASSY RIYADH TO RUEHC/SECSTATE WASHDC PRIORITY 8606 RHEBAAA/DEPT OF ENERGY WASHINGTON DC PRIORITY INFO RUEHZM/GULF COOPERATION COUNCIL COLLECTIVE PRIORITY RUEHHH/OPEC COLLECTIVE PRIORITY RUEAHLC/HOMELAND SECURITY CENTER WASHINGTON DC PRIORITY 0218 RUEATRS/DEPT OF TREASURY WASHDC PRIORITY RHRMAKS/COMUSNAVCENT PRIORITY RUEAWJA/DEPT OF JUSTICE WASHDC PRIORITY RHMFISS/HQ USCENTCOM MACDILL AFB FL PRIORITY RUEKDIA/DIA WASHINGTON DC PRIORITY RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY RUEAIIA/CIA WASHDC PRIORITY RHEHNSC/NSC WASHDC PRIORITY RUEKJCS/SECDEF WASHDC PRIORITY
C O N F I D E N T I A L RIYADH 000918
SIPDIS
NEA FOR DAS GGRAY
DEPT OF ENERGY PASS TO A/S KKOLEVAR, MWILLIAMSON, GPERSON,
AND JHART
TREASURY PASS TO A/S CLOWERY
CIA PASS TO TCOYNE
E.O. 12958: DECL: 06/10/2018
TAGS: EPET ENERG SA
SUBJECT: SAUDIS ANNOUNCE EMERGENCY OIL MEETING
Classified By: DCM Michael Gfoeller for reasons
1.4 (b) (c) and (d).
C O N F I D E N T I A L RIYADH 000918
SIPDIS
NEA FOR DAS GGRAY
DEPT OF ENERGY PASS TO A/S KKOLEVAR, MWILLIAMSON, GPERSON,
AND JHART
TREASURY PASS TO A/S CLOWERY
CIA PASS TO TCOYNE
E.O. 12958: DECL: 06/10/2018
TAGS: EPET ENERG SA
SUBJECT: SAUDIS ANNOUNCE EMERGENCY OIL MEETING
Classified By: DCM Michael Gfoeller for reasons
1.4 (b) (c) and (d).
1. (U) This is an action request. DOE/International Policy
and EB/ESC/IEC please see paragraph five.
2. (C) In the wake of oil prices reaching $139/barrel on
June 6, press news broke on 9 June that the Saudi government
plans to call an emergency meeting to discuss the current
crude oil pricing situation. The Saudi cabinet took the
decision in their weekly June 9 meeting. In a conversation
on 10 June, Ministry of Petroleum (MinPet) Public Relations
Head Dr. Ibrahim Al Muhanna indicated MinPet hoped set the
meeting date for about two weeks hence, maybe a bit later,
but would finalize a date soon. The SAG will host the
meeting in Riyadh, in coordination with the International
Energy Agency (IEA) and the International Energy Forum (IEF).
Major producing and consuming countries, and key
international and national oil companies will be invited.
Minister Naimi is the expected host; it is unclear if King
Abdullah will attend.
3. (C) Dr. Al Muhanna inquired anxiously if the USG
intended to be represented at the meeting. Energy Attache
noted the short time line, and promised to request guidance
from Washington.
4. (C) A well-placed industry source in Riyadh indicated
that Assistant Minister of Petroleum Prince Abdulaziz bin
Salman bin Abdulaziz Al-Saud had called him, quite agitated,
to request his "full support" for the meeting. The source
noted that Prince Abdulaziz appeared to be in a relatively
reluctant frame of mind to support the meeting, but "owed it
to his King" to do so.
5. (C) Comment and Action Request: Recognizing that we have
not yet received a formal invitation to the proposed meeting,
and many details about the agenda remain unclear, Mission
requests that DOE/International Policy and EB/ESC/IEC send us
talking points and/or instructions regarding the USG view on
the proposed meeting to present to MinPet. MinPet is looking
for strong international support to host this meeting -
whether at their own initiative or at the behest of their
highers-up. The little we know so far suggests that this is
a Royal initiative. Further, there appears to have been a
significant softening in the tone of the Saudi press
statements overnight, which may suggest intervention by King
Abdullah or the cabinet. The initial Reuter's announcement
of the meeting was accompanied by Petroleum Minister Naimi's
typical statement that the market was well-supplied, and no
new production decisions would be made at the proposed
meeting. However, by this morning, Petroleum Minister Naimi
was no longer speaking for the Saudi government. Instead, he
had been replaced by Information and Culture Minister Madani,
who emphasized that the Kingdom was ready to provide all oil
companies and countries that it deals with any additional oil
they need. In the wake of the G8 meeting, and Friday's $11
jump in crude prices, the Kingdom's leadership appears to
have realized that crude prices have metastasized into a
political issue potentially devastating for the Saudis' image
and interests. King Abdullah and the cabinet evidently now
view resolving this as a political issue instead of a
technical matter.
FRAKER
SIPDIS
NEA FOR DAS GGRAY
DEPT OF ENERGY PASS TO A/S KKOLEVAR, MWILLIAMSON, GPERSON,
AND JHART
TREASURY PASS TO A/S CLOWERY
CIA PASS TO TCOYNE
E.O. 12958: DECL: 06/10/2018
TAGS: EPET ENERG SA
SUBJECT: SAUDIS ANNOUNCE EMERGENCY OIL MEETING
Classified By: DCM Michael Gfoeller for reasons
1.4 (b) (c) and (d).
1. (U) This is an action request. DOE/International Policy
and EB/ESC/IEC please see paragraph five.
2. (C) In the wake of oil prices reaching $139/barrel on
June 6, press news broke on 9 June that the Saudi government
plans to call an emergency meeting to discuss the current
crude oil pricing situation. The Saudi cabinet took the
decision in their weekly June 9 meeting. In a conversation
on 10 June, Ministry of Petroleum (MinPet) Public Relations
Head Dr. Ibrahim Al Muhanna indicated MinPet hoped set the
meeting date for about two weeks hence, maybe a bit later,
but would finalize a date soon. The SAG will host the
meeting in Riyadh, in coordination with the International
Energy Agency (IEA) and the International Energy Forum (IEF).
Major producing and consuming countries, and key
international and national oil companies will be invited.
Minister Naimi is the expected host; it is unclear if King
Abdullah will attend.
3. (C) Dr. Al Muhanna inquired anxiously if the USG
intended to be represented at the meeting. Energy Attache
noted the short time line, and promised to request guidance
from Washington.
4. (C) A well-placed industry source in Riyadh indicated
that Assistant Minister of Petroleum Prince Abdulaziz bin
Salman bin Abdulaziz Al-Saud had called him, quite agitated,
to request his "full support" for the meeting. The source
noted that Prince Abdulaziz appeared to be in a relatively
reluctant frame of mind to support the meeting, but "owed it
to his King" to do so.
5. (C) Comment and Action Request: Recognizing that we have
not yet received a formal invitation to the proposed meeting,
and many details about the agenda remain unclear, Mission
requests that DOE/International Policy and EB/ESC/IEC send us
talking points and/or instructions regarding the USG view on
the proposed meeting to present to MinPet. MinPet is looking
for strong international support to host this meeting -
whether at their own initiative or at the behest of their
highers-up. The little we know so far suggests that this is
a Royal initiative. Further, there appears to have been a
significant softening in the tone of the Saudi press
statements overnight, which may suggest intervention by King
Abdullah or the cabinet. The initial Reuter's announcement
of the meeting was accompanied by Petroleum Minister Naimi's
typical statement that the market was well-supplied, and no
new production decisions would be made at the proposed
meeting. However, by this morning, Petroleum Minister Naimi
was no longer speaking for the Saudi government. Instead, he
had been replaced by Information and Culture Minister Madani,
who emphasized that the Kingdom was ready to provide all oil
companies and countries that it deals with any additional oil
they need. In the wake of the G8 meeting, and Friday's $11
jump in crude prices, the Kingdom's leadership appears to
have realized that crude prices have metastasized into a
political issue potentially devastating for the Saudis' image
and interests. King Abdullah and the cabinet evidently now
view resolving this as a political issue instead of a
technical matter.
FRAKER