VIENNA: OPEC still has a role in managing oil markets such as responding to short-lived supply disruptions, Saudi Energy Minister Khalid Al-Falih told Argus Media in an interview.
“There could be shorter-term situations in which, in our view, OPEC might intervene and yet other situations — such as long-term growth of marginal barrels — in which case it should not,” Al-Falih said ahead of a regular OPEC meeting.
He also said the market needs to search all the time for an equilibrium price to allow adequate investment in new production and meet demand growth.
“And we (OPEC) need to be flexible enough to find it and to steer the market toward it, rather than predetermine it.”
Oil prices held broadly steady on Thursday, set for their third week of gains.
Brent crude oil futures were last up 11 cents at $49.83 a barrel by 0902 GMT, while US West Texas Intermediate (WTI) crude futures were up 12 cents at $49.13 a barrel.
“There could be shorter-term situations in which, in our view, OPEC might intervene and yet other situations — such as long-term growth of marginal barrels — in which case it should not,” Al-Falih said ahead of a regular OPEC meeting.
He also said the market needs to search all the time for an equilibrium price to allow adequate investment in new production and meet demand growth.
“And we (OPEC) need to be flexible enough to find it and to steer the market toward it, rather than predetermine it.”
Oil prices held broadly steady on Thursday, set for their third week of gains.
Brent crude oil futures were last up 11 cents at $49.83 a barrel by 0902 GMT, while US West Texas Intermediate (WTI) crude futures were up 12 cents at $49.13 a barrel.
