Saudi Arabia says higher oil output driven by demand

Updated 09 June 2015
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Saudi Arabia says higher oil output driven by demand

LONDON: Saudi Arabia's Oil Ministry said on Tuesday the rise in its oil production over the past three months was a result of increased global demand and the needs of its customers, and was not designed to compensate for lower oil prices.

The world's biggest oil exporter has ramped up production to around 10.3 million barrels per day (bpd) — its highest rate on record.
That level was first reached in March, and eclipsed its previous peak of 10.2 million bpd in August 2013, according to records going back to the early 1980s.
The Saudi oil minister said in April the country's output would likely remain at around 10 million bpd.
The Oil Ministry, in a rare statement, said the Kingdom's oil policy did not reflect personal views and was formulated by an integrated team of experts and specialists in oil market economics, based at the ministry's offices in Riyadh.
"It is done in coordination with oil-producing countries, especially OPEC countries, so as to serve the Kingdom's interests in the short and medium terms. It is also reviewed by the country's senior leadership. The integrated team of experts and advisers supports the decision makers," the official said.
The ministry said the statement was issued after the Wall Street Journal published a story last week about the Kingdom's oil policies, which it said it considered to be inaccurate.
A former climate change and environmental issues adviser to the Oil Ministry, Mohammad Al-Sabban, was among the names mentioned in the article, in which he gave his views on Saudi oil policy.
The Oil Ministry statement said Al-Sabban "was not on the specialized economic team assigned to study global oil market conditions and the Kingdom's foreign petroleum policy".
It said his term had ended in mid-2013 and that "the statements he makes to Arab and international media, and his journalistic writings, represent only his personal point of view and do not ... reflect the Kingdom's official position on petroleum issues".
On Friday, oil group OPEC agreed to stick by its policy of unconstrained output for another six months, setting aside warnings of a second lurch lower in prices as some members such as Iran look to ramp up exports.


Saudi Arabia’s PIF signs MoU with China’s NAE on renewable energy

Updated 33 min 44 sec ago
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Saudi Arabia’s PIF signs MoU with China’s NAE on renewable energy

  • The MoU comes as part of the strengthening of cooperation between the two entities in the field of renewable energy
  • The MoU will contribute to enabling the PIF to support and develop manufacturing, power generation and emerging technologies

Saudi Arabia’s Public Investment Fund (PIF) announced on Friday that it has signed a memorandum of understanding with China’s National Energy Administration (NAE) on renewable energy cooperation.

The MoU comes as part of the strengthening of cooperation between the two entities in the field of renewable energy and strengthening Saudi Arabia’s position as a leading center for the development of renewable energy projects.

The MoU will contribute to enabling the PIF to support and develop manufacturing, power generation and emerging technologies in the Kingdom’s renewable energy sector over the next 10 years.

This agreement reinforces PIF’s efforts to build strategic partnerships aimed at developing local infrastructure and create more jobs, encouraging private sector institutions to engage in investment and commercial partnerships in the renewable energy sector.