Saudi Arabia won’t boost oil ouput before OPEC meeting
Baku, Azerbaijan, Aug. 31
By Aygun Badalova - Trend:
Saudi Arabia will not boost oil output and flood the market ahead of OPEC informal meeting in September, Bloomberg reported referring the kingdom’s Energy Minister Khalid Al-Falih.
Saudi Arabia isn’t concerned about global demand in spite of a drop in oil prices and a slower economy, Al-Falih said in an interview with Al-Arabiya television.
He said the country is able to pump as much as 12.5 million barrels a day of oil.
“The market is now saturated with stored crude at beyond usual levels and we don’t see in the near future a need for the kingdom to reach its maximum capacity, Al-Falih said. Demand in China is very healthy and consumption in India is very good.”
“Saudi domestic use is rising due to two new refineries in Yanbu and Jubail which have raised consumption by a combined 800,000 barrels a day,” Al-Falih added.
Saudi Arabia is the largest OPEC oil producer and exporter. The Kingdom produced 10.308 million barrels per day of oil in June compared to 10.242 million barrels per day in May, according to OPEC’s latest estimates.
Earlier Al-Falih told Reuters last week he does not believe an intervention in oil markets is necessary since the "market is moving in the right direction".
The informal OPEC meeting is expected in late September in Algeria. It is expected that the talks on oil production freeze will be held between OPEC and non-OPEC countries.
The meeting will be held at the fringe of the International Energy Forum in Algiers from 26-28 September. The forum will bring together ministers, CEOs, international organizations like OPEC and the IEA, and experts from 73 countries.