Saudi energy minister says oil market on ‘right track’

Saudi Arabia’s Energy Minister Khalid al-Falih. (Reuters)
Updated 13 January 2019
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Saudi energy minister says oil market on ‘right track’

  • OPEC production in December is lower than in November, by 600 thousand barrels per day
  • US crude oil output hit an all-time high of more than 11.5 million barrels per day in October

Saudi Arabia’s Energy Minister Khalid al-Falih said on Sunday the oil market is “on the right track” and will quickly return to balance, but oil producers are willing to do more if needed.

“If we look beyond the noise of weekly data and speculators’ herd-like behavior, I remain convinced that we’re on the right track, and that the oil market will quickly return to balance,” said Falih, addressing an oil conference in Abu Dhabi.

The Saudi minister also said US shale oil extraction will not lead to market weakness, Al Arabiya news channel reported. 

US crude oil output hit an all-time high of more than 11.5 million barrels per day in October, according to government data released last month.

“If we find that more needs to be done, we will do so in unison with our OPEC and non-OPEC partners where collaboration is essential too,” he added.

The Organization of the Petroleum Exporting Countries (OPEC), and other leading global oil producers led by Russia, agreed in December to cut their combined oil output by 1.2 million barrels per day starting from January to prevent a supply glut and boost sagging prices.

Al-Faleh said that secondary sources indicate that OPEC production in December is lower than in November, by 600 thousand barrels per day.

Oil production from the Organization of the Petroleum Exporting Countries rose by 40,000 barrels a day to 33.08 million barrels in November from a month earlier.

While stressing that demand for oil is still strong, he explained that “what we need to do is reduce the range of volatility in oil prices.”

Al-Falih said that Saudi Arabia will maintain its policy of having sufficient spare oil capacity to stabilize the market.

Later told reporters that he sees no need for an extraordinary OPEC meeting before April, when the group is set to decide its output policy for the rest of 2019.


Saudi Arabia and Spain’s Navantia plan combat management systems venture

Updated 18 February 2019
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Saudi Arabia and Spain’s Navantia plan combat management systems venture

  • The SANNI venture will integrate and adapt Navantia’s combat management systems for Saudi navy corvette ships

ABU DHABI: State-owned Saudi Arabian Military Industries (SAMI) signed an agreement on Monday with Spanish state-held shipbuilder Navantia to set up a joint venture to provide combat systems, the new partnership’s chief executive said on Monday.
The SANNI venture, the name of which stands for SAMI Navantia Naval Industries, will integrate and adapt Navantia’s combat management systems for Saudi navy corvette ships, said Antonio Barberan at the IDEX military exhibition in Abu Dhabi.
SANNI is also in talks with other potential customers in the Middle East, he said.
SAMI owns 51 percent of SANNI, with Navantia holding the remaining 49 percent.
In November SAMI and Navantia signed an agreement to jointly manufacture five corvettes for the Saudi navy.