In an exclusive interview with Xinhua, Ali Naimi said the majorpriority of the Organization of Petroleum Exporting Countries (OPEC) is to maintain the stability of the oil market and guarantee oil supply based on fair and reasonable prices.

As OPEC's most influential member, Saudi Arabia supports the organization's stance to keep its official output steady, he added.

Commenting on the media reports that some OPEC member countries are considering to cut oil output in order to raise price, the Saudi oil minister said: "There is no reason to reduce oil output at present because the world oil price remains stable."

He added that OPEC has signaled that it would pump more oil to make up for any disruption in supply caused by the war in Iraq. Earlier reports said that Saudi Arabia is believed to have as much as 50 million barrels in storage in the country and more en route to other storage facilities.

On energy cooperation between Saudi Arabia and China, Naimi, who has visited China for six times, termed China as one of its most important energy cooperation partners and the largest importer of Saudi oil in Asia.

"China, which has witnessed fast and sound economic growth in the past years, needs to import huge amount of oil to meet its domestic supply while Saudi Arabia is rich in oil resources." he noted, adding "So both economies are supplementary."

Naimi said bilateral economic cooperation has great potentials and broad prospects. Saudi Arabia has set up many joint ventures in China's southern province of Fujian and the eastern province of Shandong, and will continue to expand its investment in China's petrol-chemical area, he added.

China's official statistics showed that the total trade volume between China and Saudi Arabia reached US$4.075 in 2001, with Saudi Arabia maintaining a trade surplus of US$1.367.

The minister said, as China is a big nation with increasing demand for oil supply, it is of vital significance for China to establish its national strategic oil storage system.

"Such a system could guarantee national energy security under emergency circumstances," he noted.

(Xinhua News Agency April 10, 2003)