Friday 13 September 2013

Saudi Arabia Says It Has Enough Oil To Meet “Any” Demand

The global oil market is well balanced and top exporter Saudi Arabia is ready to supply whatever volume of crude is needed to meet demand, Saudi Oil Minister Ali al-Naimi said on Thursday. Saudi Arabia produced record high volumes
of crude in August as it boosted output for
the second time in two years to cushion the
global oil market from supply disruptions. Mr. Naimi’s comments came after producer
group OPEC this week sought to reassure
consumers there is sufficient supply to
cover a plunge in Libya’s output. “For the
record, oil market fundamentals are good. The market is well balanced. I repeat the
message that Saudi Arabia is willing and
capable for meeting any demand,” Mr. Naimi
said at an industry event. Despite rising Saudi output, benchmark
Brent crude prices spiked above 117 dollars
a barrel LCOc1 in late August on the virtual
shutdown of Libyan oil output and the
prospect of U.S. military action against
Syria. Brent traded at 111.67 dollars on Thursday, after falling this week as the
threat of a U.S. strike receded, but the
market remains volatile on concern
diplomatic efforts to avoid military action
might fail. Speculation about international political
events is driving oil prices rather than any
shortage in supply, Mr. Naimi said on
Thursday. “Our (OPEC) production last
month was almost the same as a month
before, only 100,000 barrels a day shortage. “There is no effect whatsoever…we won’t
see a crisis,” said Abdullah al-Badri, the
secretary general of the Organisation of the
Petroleum Exporting Countries (OPEC).
Saudi Arabia pumped a record 10.19 million
barrels per day in August, an industry source told Reuters. Rising supply from
Saudi helped offset losses from other OPEC
members. OPEC output in August fell around 124,000
bpd on the month to 30.23 million bpd, but
the group said in its monthly report this
week that the market was well supplied

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