$100 per barrel great price for oil says Saudi
Adelaide, May 13, 2012
Top crude exporter Saudi Arabia wants an oil price of around $100 a barrel and would like to see global inventories rise before demand picks up in the second half of the year, Oil Minister Ali Al-Naimi said on Sunday.
International Brent crude settled at $112.26 on Friday, well off a peak of over $128 in March. Brent has mostly traded above $100 since early 2011, keeping fuel costs high and threatening to damage a fragile global economy.
'We want a price around $100, that's what we want,' Al-Naimi told reporters ahead of an industry event in Australia. 'A $100 price is great.'
Saudi Arabia is working at bringing Brent crude prices to that level, he added. The kingdom, Opec's biggest producer, said it pumped 10.1 million bpd in April, its highest for more than 30 years, as it bid to meet growing demand and curb oil prices.
Prices have stayed high in 2012 due to concern about disruption to global supply from US and European sanctions aimed at hurting Iran's crude export revenues and forcing Tehran to halt its nuclear programme. The US and its allies suspect Iran is developing nuclear weapons, which Tehran denies.
Al-Naimi said last week that producers were pumping enough to deal with the impact of the sanctions on the oil market.
He reiterated on Sunday that producers were pumping 1.3 million barrels per day (bpd) to 1.5 million bpd above demand, which is helping to build inventory.
'That should give comfort to consumers,' he said. Inventories are at the equivalent of around 58 days of demand, but Saudi Arabia would like to see stockpiles build more ready for the seasonal increase in fuel consumption in the second half of the year, Al-Naimi said.
'It should be a little bit higher, because you are going into the third and fourth quarter, and demand will be higher as usual,' he said.
The International Energy Agency said on Friday that oil prices were likely to stay high, despite a dramatic improvement in world supply and a big build in stocks, due to the tensions between Iran and the West. - Reuters
More Energy, Oil & Gas Stories
- S Korea to pay Iran $550m under nuke deal
- Qatar LPG exports will stay unchanged till 2018
- $14bn Bahrain energy sector focus for summit
- Iraq now world's fastest-growing oil exporter
- Old IT systems pose risk to oil firms
- Thomson Reuters adds commodity monitoring tool
- Oil below $90 to hit GCC economies
- GlassPoint appoints new Oman director
- Sheffield company opens Dubai hub
- Oman targets big rise in gas output
- Intertek buys UAE firm for $66m
- Qaiwan to tender Baizan refinery EPC contract
- Al Maha wins Oman Air fuel supply deal
- Iran to become top gas importer by 2025
- UAE hydrocarbon projects seen hitting $11bn
- Summit focus on occupational safety
- Aramco names new senior VP
- Siemens gets $253m Qatar power contract
- Taqa-led group's India deal worth $1.6bn
- Taqa-led group to buy India power plants
- Iraq oil exports hit record 2.8m bpd
- Korean refiners eye more Iraq crude
- Dana starts Egypt gas plant upgrade
- Opec oil production hits new high in Feb
- Taqa-led group to buy Indian hydropower plants
- Schneider gets energy management certification
- Morocco moves ahead with $1.7bn wind farms
- Iraq approves power plant investments
- 670,000 oil & gas wells ‘need to be drilled’
- Qatar bourse celebrates Mesaieed listing