Oil Markets are currently balanced and inventories are at excellent levels, but the geopolitical situation is having an impact on prices, Saudi Oil Minister Ali al-Naimi said Tuesday.
Oil Markets are currently balanced and inventories are at excellent
levels, but the geopolitical situation is having an impact on prices, Saudi Oil
Minister Ali al-Naimi said Tuesday.
"The market is in a very good position, supplies are adequate and
inventories are excellent. Prices are also excellent but they are impacted by
geopolitics," he told reporters in
Riyadh
.
In recent weeks, uncertainties over the
Syria
crisis and a sharp fall in Libyan oil output have made oil prices volatile and
sparked fears about the security of the crude supply in the
Middle
East
, which produces about a third of the world's oil.
Mr. Naimi said the kingdom's production capacity stands at 12.5 million barrels
per day, and the Gulf state remains committed to meeting demand in the market.
"Everybody knows about the kingdom's position in the market...the kingdom
always tries as much as it can to meet any additional demand," he said.
Industry sources have said the world's energy powerhouse is already nearing its
comfortable operational production limits and may not be able to meet any
further major shortage in the market.
Saudi Arabia
, the
world's largest oil exporter and the only producer with significant flexibility
to turn its spigots on and off, increased its output by 156,200 barrels a day
to 10.19 million barrels a day last month. That is the highest level since at
least 1980, when the country opened the taps to make up for a sharp fall in
Iran
's
output after that country's 1979 revolution.
Mr. Naimi declined to say how much the member of the Organization of the
Petroleum Exporting Countries is currently producing, but he has often said it
is the kingdom's policy to maintain spare output capacity of 1.5 million-2
million barrels a day at all times to cope with emergency shortfalls.
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