Despite policy differences regarding Israel, Saudi
Arabia has rebuffed Iraq's oil embargao and maintained its cooperation with the United States in stabilizing the
world's oil market.
U.S. officials said Riyad and Washington have taken steps over the last
few weeks to stabilize the international oil market. They said Riyad has
expanded oil production capacity and diversified its exports in an effort to
dampen the affect of Iraqi's oil embargo.
Saudi Arabia has stressed it will not follow Iraq's oil embargo. On
Monday, Iraqi President Saddam Hussein urged oil producers to cut exports by
50 percent to support the Palestinian war against Israel, Middle East Newsline reported.
"Saudi Arabia has pursued a policy of investing in spare oil production
capacity, and diversifying its export routes to both of its coasts," Under
Secretary of State Alan Larson said on Monday. "These investments help make
Saudi Arabia a reliable oil supplier, and can be likened to an insurance
policy for the world economy."
Larson told a Washington conference that Saudi Arabia can assure market
stability. He said Riyad has the capacity to "mitigate supply disruptions in
any region."
