Al-Naimi: Oil supply and demand 'are in equilibrium'

LONDON: Global oil prices edged higher on the eve of an output gathering by the OPEC, and before the release of US third-quarter economic data.
New York's main contract, West Texas Intermediate (WTI) for delivery in January added 33 cents to $94.15 a barrel.
Brent North Sea crude for January gained just two cents to stand at $111.47 a barrel in London midday deals.
Expectations are mounting that the 12-nation Organization of Petroleum Exporting Countries (OPEC) will maintain its collective production ceiling at a meeting in Vienna on Wednesday.
"OPEC meet tomorrow and on the surface appear to be quite relaxed about next year's supply/demand balance," said analyst David Hufton at brokerage PVM Oil Associates.
He added: "As a result there should be zero expectation that OPEC will make any change to production targets at their meeting this week."
OPEC's member nations from the Middle East, Africa and Latin America together produce about one-third of the world's crude and have an output ceiling of 30 million barrels per day — slightly above current production.
"The market is in the best position it can be," Petroleum and Mineral Resources Minister Ali Al-Naimi told reporters in Vienna ahead of the OPEC meeting.
"Demand is great, economic growth is improving," said Al-Naimi, who represents the world's biggest producer of crude oil.
"Supply and demand are in equilibrium, inventories are in a good position," he added. "We are at the right price right now."
Saudi Arabia argues that current prices averaging $100 per barrel provide acceptable income for producers without weighing too heavily on consumers.
Asked if OPEC should cut output amid the prospect of increased exports from Iran in the wake of the country's recent nuclear deal, Naimi said: "Why cut? Demand is there."
Crude futures had rallied sharply on Monday, with Brent striking a September peak of $112.34 after upbeat manufacturing data in top global oil consumer the US and number two China.
"Buoyancy came from positive economic data from China and the US, suggesting that demand prospects are brightening in the two most important oil consuming countries," said Commerzbank analysts in a note.
"Remarkably, the oil prices were able to detach themselves from the debate this triggered about a possible earlier exit from the US Fed's ultra-expansionary monetary policy."
In contrast, Europe's main stock markets slid on Tuesday as the solid US data sparked renewed talk that the Federal Reserve could soon start tapering its vast economic stimulus, dealers said.
Traders will also focus this week on more key US data, with third-quarter GDP slated for release on Thursday and November's non-farm payrolls report on Friday.
The US central bank's policy-setting Federal Open Market Committee is scheduled to meet from December 17.