Saudi Arabia watching oil market closely: Minister

Saudi Arabia watching oil market closely: Minister
Energy, Industry and Mineral Resources Minister Khalid Al-Falih
Updated 11 August 2016

Saudi Arabia watching oil market closely: Minister

Saudi Arabia watching oil market closely: Minister
JEDDAH: OPEC members and non-members will discuss the oil market situation next month in Algeria, including any possible action that may be needed to stabilize the market, said Energy, Industry and Mineral Resources Minister Khalid Al-Falih.
The International Energy Forum, which groups producers and consumers, is due to meet on Sept. 26-28 in Algiers.
Al-Falih said in a statement that Saudi Arabia was watching the market closely, and would work with OPEC and non-OPEC producers to take action to help rebalance the market if the need arose.
The minister said an increase in Saudi Arabia’s output to 10.67 million barrels per day in July, a record, was due to seasonal demand during summer and in part to meet higher demand from customers.
The statement indicates Riyadh is worried that oil prices could be heading back toward $40 per barrel or lower due to fears of oversupply.
Al-Falih said in the statement the market is on the right track toward rebalancing but "the process of clearing crude and products inventories will take time".
"But the large short positioning in the market has caused the oil price to undershoot. However, this is unsustainable. To reverse the declines in investment and output, oil prices have to go up from the current levels," he added.