Tough talking at energy forum

For the past 3 months, the oil price has hardly dipped below $30 a barrel

There is likely to be heated debate on oil prices as the world's leading oil producers and consumers meet this weekend for the seventh international energy forum in the Saudi capital of Riyadh.

The time is not ripe for a fifth increase

Ali-al-Naimi, Saudi oil minister

With crude oil prices still comfortably above $30 a barrel, oil producers are once again under pressure from importing nations to raise production in order to reduce prices.

US energy secretary Bill Richardson has gone to the meeting with this aim firmly in mind.

He has already raised the stakes this week, saying oil prices are "much too high" and risk sparking inflation or recession in some countries.

He said he would like to see oil priced between $20 and $25 a barrel.

Saudi crown prince Abdullah

The US, the world's biggest oil consumer, is heading into the winter with reduced heating oil stocks.

This week the US Department of Energy reported that heating oil inventories had fallen by half a million barrels to 47.8m, some 30% below the level a year ago.

The Organisation of Petroleum Exporting Countries (Opec) officially has a target price range of $22-$28 a barrel, but has said it will not increase production further this year.

War of words

On Friday, the Saudi oil minister Ali al-Naimi dampened any talk of raising output quotas to cool prices.

"Opec has increased its production ceiling four times in one year," he said, "and the time is not ripe for a fifth increase."

The organisation is concerned that if production is boosted, then once the winter is over, there will be a glut in oil supplies.

The Saudi minister also repeated the Opec view that the taxes imposed on consumers are the main reason for the price hike as the taxes account for 70% to 80% of the retail price in many countries.

"The basis of co-operation is frankness and transparency, without levelling accusations and counter accusations," he added.

Some 42 countries with scores of oil ministers, are represented at this weekend's forum, which is being hosted by Saudi Arabia's Crown Prince Abdullah.

And co-operation is the key to the discussions, according to the BBC's correspondent in Riyadh, Frank Gardner.

"The aim is to start a dialogue between producers and consumers to stop this battle over who's to blame for the high price of oil," he said.

"The central issue to all parties is stabilising the oil price, but there's no sure-fire mechanism for this," he added.