MADRID: The global oil market is sufficiently supplied with extra oil being pumped from Saudi Arabia helping, Maria van der Hoeven, head of the International Energy Agency said.
“We are always closely monitoring markets. We can see that the oil market is sufficiently supplied. Saudi Arabia is bringing more oil to the market. We can also see that the US and Canada are bringing more oil to the market,” she said in the Spanish capital at an energy conference.
Petroleum and Mineral Resources Minister Ali-Al Naimi said recently the Kingdom was ready to take action to calm rising prices, which he said were not supported by market fundamentals.
The IEA would continue to monitor developments in the market, van der Hoeven added.
She also said in the IEA’s next energy outlook they would publish a chapter on Iraq, reflecting the country’s capacity to help boost global production.
“Iraq has enormous untapped reserves. And the thing is what is going to happen if these reserves are tapped? Iraq is a game-changer.”
She refused to be drawn on reports of the environmental impact of Arctic sea ice melt. From the IEA’s standpoint the Arctic remained a possible opportunity for exploration.
The price of oil is steady around $ 92 a barrel yesterday after three days of losses. But weak economic data from Europe, China and Japan are reinforcing expectations of lower oil demand.
In morning trading, US benchmark oil rose 2 cents to $ 92 a barrel in New York. In London, Brent crude was up 89 cents to $ 109.05.
Oil is down 7 percent so far this week. Signs that the global economy is slowing tend to push oil prices lower because people and businesses use less energy. Also the US government reported that crude stocks were unusually high.
Among the sobering news for investors was a report pointing to a deepening recession in Europe and a private survey of manufacturers in China that showed activity fell again in September.
IEA highlights Kingdom’s role in ensuring oil market stability
