May 15 (Bloomberg) -- Saudi Arabian Oil Minister Ali al- Naimi said global crude oil reserves have doubled since 1980, countering analysts who predict a supply shortage.

Oil prices and other commodity markets are ``becoming increasingly more interconnected with the financial markets where rapid developments in the latter have intensified oil price volatility,'' he said in a speech today in Seoul.

Saudi Arabia plans to boost its oil production capacity to 12.5 million barrels a day by 2009, Naimi said. The rush to develop biofuels has increased the cost of ``the marginal barrel worldwide,'' he said.

To contact the reporter on this story: Shinhye Kang in Seoul at skang24@bloomberg.net.

Last Updated: May 15, 2008 03:00 EDT