Oil market has extra supplies, says Kingdom

Petroleum and Mineral Resources Minister Ali Al-Naimi said oil markets would remain well supplied even after fresh international sanctions against Iran take effect, as global crude oversupply is already as much as 1.5 million barrels per day (bpd).
“There is a surplus oil in the market. There is surplus supply,” he told reporters in Tokyo after holding talks with Japanese officials about energy supplies.
US and European Union sanctions on Iran’s oil exports take effect in June and July.
When asked if he saw oil supplies tightening in coming months as global sanctions against Iran come into effect, Al-Naimi said: “Absolutely not.”
According to Reuters, he said: “There is today about 1.3 to 1.5 million barrels per day (bpd) of extra supply over demand.”
Saudi Arabia is pumping around 10 million barrels per day and is storing 80 million barrels to meet any sudden disruption in supplies, Al-Naimi said on Tuesday.
The US and Britain have discussed a release from oil reserves to help prevent fuel prices choking economic growth.
Al-Naimi said it was up to developed nations to decide whether to release oil from their strategic reserves.
“That’s their decision,” he said, according to Reuters.