Saudi assures India of uninterrupted oil supply

New Delhi, Jan 17 (UNI) World's leading petroleum producer and exporter, Saudi Arabia, today assured India of a smooth flow of oil supply from the country.

''We are a major supplier of oil to India and shall continue to be so. There is no reason for India to fear shortage of supply,'' Saudi Arabia Minister of Petroleum and Mineral Resources Ali bin Ibrahim Al-Naimi told reporters after a meeting with his Indian counterpart Murli Deora here.

He said the countries are also looking for mutual investment opportunities.

Pointing out that Saudi Arabia's spare crude oil capacity will be three million barrels per day on February one, the minister said the investments in the oil sector are usually for a long term and are not decided on short-term price movements.

''Oil producers are not moved by a price movement today tomorrow or in the next month. As producers we look at the future. Demamnd is going to grow for energy. Fossil fuels are the primary source of energy,'' Mr Al-Naimi said.

Natural disasters like tsunami, interest rates, value of dollar, statments of ministers also impact the market unfortunately, the oil minister of world's largest oil exporter said.

Mr Al-Naimi said Saudi Arabia will hold a forum for Asian countries in May. The forum will act as a platform to hold talks between the producers and consumers of the countries.

Saudi Arabia exports 90 per cent of its oil and generates 75 per cent of its government revenues from this fuel.

UNI