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Oil market 'fairly well balanced': Saudi oil minister

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Agence France Presse Vienna
Last Updated : Jan 20 2013 | 10:12 PM IST

Saudi Oil Minister Ali al-Nuaimi said the oil market was "fairly well balanced" as he arrived here today, increasing speculation that Opec states will maintain production at current levels.        

"The market is fairly well balanced," the influential minister told reporters. "We have worked very hard since June's meeting to bring prices to where they are now. I think everything is in balance. Inventories are in a healthy position."         

The 13-nation Organisation of Petroleum Exporting Countries is to decide Tuesday on its latest policy, with no change expected to its quota of 29.67 million barrels per day (bpd).         

In the run-up to the meeting, the biggest area of uncertainty had surrounded Saudi Arabia, the de facto leader of Opec and the world's biggest crude producer.           

As a close ally of the US, it is keener than most to keep oil prices down to appease Western consumers.

Comments so far from key members suggested a split on whether output should be reduced in the face of declining prices in recent months.

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Opec President and Algerian Energy Minister Chakib Khelil said yesterday that a cut in production by the group, which pumps 40 per cent of world oil, would be discussed.         

"Everybody agrees that we will have an oversupply problem of between half a million and one-and-a-half million (bpd) by early next year," he said as he arrived in Vienna.         

"Of course there is an oversupply," Iranian Oil Minister Gholam Hossein Nozari said as he arrived, underlining Tehran's desire to see the organisation enforce its quota system.

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First Published: Sep 09 2008 | 2:13 PM IST

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