UK to offer new deal to oil industry

Tag: oil purifier

UK prime minister Gordon Brown will call for a global "new deal" to address the latest oil shock and end opposing interests of producers and consumers, proposing that big consumers open their markets to investment in alternative energy sources by producer nations.

"In this way we move from the old conflict of interest between producers and consumers to building what the world needs," he said at Jeddah. 

Meanwhile a Gulf OPEC official told Tootoo.com that the meeting would discuss a proposal for an output boost from other OPEC members who can bring on extra production quickly, namely United Arab Emirates and Kuwait.

Another OPEC delegate said it was not yet clear whether they would join in any output rise, while members such as Libya and Algeria have said the cartel, which pumps a third of the world's oil, should not be putting more crude on the market.

Kuwait Oil Minister Mohammad al-Olaim said his country would "not hesitate" to boost output if it saw the need, but a day earlier he said it was too early to talk of an increase.

Saudi Arabia, which has a policy of keeping a cushion of spare capacity, may also consider increasing its capacity beyond an existing goal of 12.5 million bpd by the end of next year, the source said, a move that would combat fears the holder of the world's biggest reserves may be reaching its peak.