Saudis to pump more oil

For the State with the nation's highest gas prices, the thought of price stability in oil markets comes as good news:

Saudi Arabia has boosted the amount of oil it pumps and will produce more to meet surging world demand, the kingdom's petroleum minister said in a speech in San Francisco on Monday.

Ali Naimi said his government remains committed to seeking stable oil prices. But in response to questions, he declined to say where prices will level off.

Crude oil prices have slid 14 percent since peaking at $57.27 on April 1, but remain far above historic norms.

"The kingdom has long played a stabilizing role in oil markets," Naimi told a lunch gathering in the Carnelian Room, high above San Francisco's Financial District. "We have been there in times of disruption and shortage to provide additional supplies to the market."

He said current high prices are the direct result of years when oil flooded the market during the late 1980s and 1990s. The resulting low prices discouraged new production and helped raise demand, he said.

"Past experience teaches us that very low prices and very high prices are not sustainable," he said.