In the first significant move to check the menace of the oil price surge, Saudi Arabia will convene a meeting of oil producing countries and consumers to discuss ways of dealing with soaring energy prices and work to prevent unjustifiable increases.
A meeting of the Saudi Arabian cabinet held in Jiddah has decided to work with OPEC to "guarantee the availability of oil supplies now and in the future," according to Information and Culture Minister Iyad Madani.
In a statement issued Monday, Madani said the kingdom of Saudi Arabia will work to ensure there will be no "unwarranted and unnatural oil price hikes that could affect international economies, especially those of developing countries."
"Saudi oil minister Ali al-Naimi has been entrusted to call for a meeting in the near future that will include representatives of oil-producing countries, consumers and companies that work in extracting, exporting and selling oil to analyze the price hike, its causes and how to deal with it," the statement said.
Oil shed more than $4 off the price of a barrel Monday after the Saudi government's call for international dialog on prices. Light, sweet crude for July delivery fell $4.19 to settle at $134.35 a barrel on the New York Mercantile Exchange.
The world's biggest producer of oil with an output of about 9.4 million barrels a day, Saudi Arabia said that recent price increases were not justified by market fundamentals and that the kingdom would work with OPEC to guarantee supplies.
Saudi Arabia's announcement comes just three days after the record $10 rise on Friday, when oil surged to surpass $138 per barrel as the dollar weakened further and tensions escalated between Israel and Iran, the world's fourth-largest exporter.
Friday's steep price rise prompted the world's leading economies and oil consumers to urge oil producers to boost output, which has been stable at about 85 million barrels a day since 2005. Saudi Arabia's apparent move to stabilize the oil market stems from their concern that sustained high oil prices will eventually slacken the world's appetite for oil, affecting them in the long run.
OPEC president Chakib Khelil has said that the cartel will make no new decision on production levels until its Sept. 9 meeting in Vienna.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.