Saudi willing to boost oil supply in case of shortage, says minister

Saudi willing to boost oil supply in case of shortage, says minister

Saudi Oil Minister Ali al-Naimi said on Monday the world's top oil exporter was willing to supply markets with more crude if rising tensions between Russia and the West over Ukraine cause a shortage.

Russia's military intervention on Ukraine's Crimean peninsula and its aftermath in eastern Ukraine have rattled oil markets for the last few months, keeping benchmark Brent futures near $108 a barrel after hitting $112.39 on March 3, the highest this year, Al Arabiya reported.

"We are willing to supply any shortage which may arise," Naimi said. He said the kingdom's current output is around 9.6 million barrels per day (bpd), while it has a capacity of 12.5 million bpd.

Saudi Arabia produced 9.66 million bpd of crude in April, up from 9.566 million bpd in March, an industry source familiar with the matter said. It supplied 9.650 million bpd to the market, up from 9.533 million bpd in March.

Naimi later added that both Saudi Arabia and the producer group OPEC would meet any additional demand for oil.

"Wherever demand is needed, we and other OPEC members will supply," he said.

Potentially adding to the tensions over the breakaway efforts in eastern Ukraine, pro-Moscow rebels declared a resounding victory in a Sunday referendum on self-rule.

Concern over the situation helped support oil markets on Monday. Brent gained 27 cents to $108.16 a barrel by 0740 GMT, while U.S. crude was 3 cents higher at $100.02.

Speaking on the sidelines of a conference in Seoul, Naimi also said $100 a barrel was a fair price for oil.

"One-hundred dollars is a fair price for everybody - consumers, producers, oil companies," he said. "It's a fair price. It's a good price."

The minister also said the Organization of the Petroleum Exporting Countries (OPEC) should maintain its current output cap of 30 million bpd when it comes up for review at the producer group's next meeting in June.

"Supply is highly sufficient, demand is great and the market is fairly stable," Naimi said.

"There is no reason for a change. Absolutely no reason."

At the next OPEC meeting on June 11 a new deal may be reached over the production cap to account for rapidly rising oil output in the United States and a number of OPEC members aiming to restore full output after sanctions and civil strife.

Iran and Iraq, OPEC's No.2 and No.3 producers, both feel they are special cases because of production lost to sanctions - Iraq over decades under Saddam Hussein up to 2003 and Iran over the past two years for its nuclear program.

But Naimi ruled out any plans to reduce the Saudi kingdom's output to make way for others.

"People like our oil - why reduce?" Naimi said, when asked if the kingdom would cut production to accommodate rising output from other producers.

Naimi also said that total global oil demand was steady.

"Don't worry about individual countries - look at the total," he said.

OPEC in March said world oil demand will increase more than expected in 2014, raising its prediction for a second straight month as U.S. and European economic growth picked up.

In a monthly report, OPEC said global demand will rise by 1.14 million bpd this year, up 50,000 bpd from its previous forecast. It also raised its 2014 projection for global demand for OPEC's crude to 29.7 bpd, up 100,000 bpd from the previous month's report.

Azerbaijan eyes to launch WeChat payment solution
Azerbaijan eyes to launch WeChat payment solution
Uzbekistan, Ireland consider establishing co-op in tourism sector
Uzbekistan, Ireland consider establishing co-op in tourism sector
Iran hopes Gorgan-Aktau flight to boost its tourism industry
Iran hopes Gorgan-Aktau flight to boost its tourism industry
Loading Bars
Latest
Nine killed in Kazan school shooting
Second batch of Sputnik V vaccine to be delivered to Azerbaijan by late May - Russian FM
FMs of Azerbaijan, Russia sign plan of consultations for 2021-2022 (PHOTO)
Azerbaijan condemns all terror acts - Azerbaijani FM
Uzbekistan reveals number of vaccinated people
Azerbaijani president congratulates Azerbaijani people on Ramadan holiday
Armenian railways are owned by Russian railways, therefore, we are discussing issue mainly with Russian side - President Aliyev
Twitter Donates $15 Million For COVID-19 Relief In India
President Ilham Aliyev criticizes statements of Canada's, France's MFAs: Let them mind their own business
Startups fight COVID-19: How healthtech startup Meddo is helping tackle the hospital bed crisis
Outpouring of support from US for India, Covid-19 help touches USD half a billion
Zangazur corridor must and will be opened - President Aliyev
PFPA-Musavat duo mobilized all their resources to overthrow Heydar Aliyev in Nakhchivan - President Aliyev
This visit to Nakhchivan has great symbolic meaning - President Aliyev
President Aliyev warns revanchists in Armenia: They shouldn’t play with fire
Military equipment available to Nakhchivan Army today probably superior to equipment of some advanced countries - President Aliyev
Russian FM visits tomb of National Leader Heydar Aliyev
There is no territorial unit called Nagorno-Karabakh in Azerbaijan - President Aliyev
Iran and Serbia plan to develop trade ties
Azerbaijani, Russian delegations holding meeting in expanded composition
Value of exports from Azerbaijan to UK soars
FMs of Azerbaijan, Russia begin one-on-one meeting
Queen Elizabeth to set out UK government's post-pandemic agenda
Uzbek-Chinese JV opens tender for calibration of ultrasonic flowmeters
Australia's Victoria on alert after first COVID-19 case in two months
Central Bank of Azerbaijan makes allocations to support credit register system
Kazakhstan sees increase in trade with Iran despite COVID-19
Kazakhstan boosts exports to Georgia multifold
Turkey reveals 1Q2021 data on cargo movement via local ports from Russia
Baku welcomes UNESCO mission to assess cultural heritage of Karabakh - Azerbaijani MFA
Iranian currency rates for May 11
Kazakhstan’s Intergas Central Asia company opens tender for feasibility study dev't
TAP to open tender for purchase of gas for fuelling compressor stations
UN says Europe needs more efficient mechanisms to handle migrant arrivals
Amazon raises $1 billion sustainable bond for climate
Latest prices for Azerbaijani oil disclosed
Azerbaijan boosts import of coffee, tea
SOCAR’s Petkim extends time of repaying receivables
Central Bank of Azerbaijan releases 1Q2021 net external assets of local commercial banks
Uzbekistan reveals COVID-19 data for May 11
Turkey unveils volume of goods handled through Bandirma port in 1Q2021
Turkey publishes 1Q2021 data on cargo movement via Izmir port
Number of ships received at Turkish Ambarli port in 1Q2021 revealed
Turkey confirms 13,604 new COVID-19 cases
Kyrgyzstan introduces state regulation of prices for vegetable oil and sugar
Immunization Technical Advisers of Georgia hope WHO to authorize Sinovac
Envoy: Iran supports Afghan peace process
TRACECA Permanent Representative talks cargo traffic growth on Azerbaijani section
Over 610 Palestinians injured in clashes with Israeli police in East Jerusalem - newspaper
Some 20 terrorists killed, 4 bases destroyed in Burkina Faso
WHO records over 677,000 new daily cases of COVID-19 worldwide
Italy reports just over 5,000 new COVID-19 cases, 198 deaths
7 rockets fired from Gaza at Jerusalem area: Israeli military
Saudi Arabia to require arriving visitors to quarantine for a week
Oil prices inch higher as traders eye U.S. pipeline shutdown
Palestinians report several killed in Israeli air raids on Gaza
Biden confident he will meet with Putin
Over 1.6mln receive COVID-19 vaccine in Kazakhstan
Azerbaijan's import of cars from Turkey drops
Iran makes advanced industrial flame arrester
Putin says 21.5 mln Russians vaccinated against COVID-19
U.S. Treasury launches access to $350 billion in state/local COVID-19 aid
President Ilham Aliyev receives delegation led by Russian foreign minister (PHOTO)
Global COVID-19 cases, deaths reach plateau - WHO
Electric, hybrid car sales in Turkey surge over 200% in 4 months
Georgian, North Macedonian Presidents sign visa-free agreement
Second component of Sputnik V vaccine delivered to Kyrgyzstan
Iran produces oil-based ozone generator
India COVID cases hold close to record highs as calls widen for national lockdown
USAID’s focus to remain on modernization of energy sector in Kazakhstan
China-made meteorological satellite for dawn-dusk orbit passes review
Saudi Arabia's GDP contracts 3.3% in Q1 on oil output, non-oil economy recovers
Azerbaijan purchasing new equipment to speed up mine clearance on liberated lands (VIDEO)
Iran's Energy Exchange announces products to be on sale on May 11
Weekly review of Azerbaijani precious metals market
Activities in Iran’s Khorramshahr port climb
Iran’s Bahar Azadi gold coin price continues to increase
New facility to be put into operation in Iran’s electricity sector
Iran boosts production, export of greens and vegetables
Azerbaijan shares data on number of vaccinated citizens for May 10
Iran's ICOFC to develop two gas fields
National leader Heydar Aliyev`s 98th anniversary marked at parliament (PHOTO)
Program of Russian FM's visit to Azerbaijan unveiled
Azerbaijan confirms 371 more COVID-19 cases, 892 recoveries
Public reps of Azerbaijan paying tribute to late National Leader Heydar Aliyev (PHOTO)
Mine-clearing operations begin in Azerbaijan's liberated villages
Iran talks IAEA monitoring cameras at nuclear sites
Presidents of Russia, Azerbaijan hold phone conversation
Int'l organizations notified about Armenia's crimes against Azerbaijani civilians - Azerbaijan's prosecutor general
Criminal cases against Armenian terrorists who fought in Karabakh nearing completion - Prosecutor General of Azerbaijan
Uzbekistan eyes ratifying two more conventions of International Labor Organization
Uzbek mining and metallurgical complex exceeds export plan by half
Cargo movements in Iran’s Imam Khomeini port up
Iran reveals details of saffron exports
Various results achieved in Vienna every day – Iran’s MFA
Oil gains after cyberattack forces shutdown of U.S. fuel pipelines
Heydar Aliyev saved independent Azerbaijan from disappearing from political map - Russian expert
Iran, Saudi Arabia conduct both bilateral, regional talks – Iran's MFA
Registration of presidential candidates starts in Iran
Volume of loaded, unloaded cargo in Iranian ports grows
All news