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The Minister of Energy and Industry H E Dr Mohammed bin Saleh Al Sada in Riyadh to attend the 31st meeting of the GCC Oil and Energy Committee.
RIYADH: Saudi Oil Minister Ali bin Ibrahim Al Nuaimi said yesterday that the kingdom will work to satisfy global energy markets and to moderate prices. “We will provide the markets with what they need. We will work to moderate prices.” Nuaimi said here.
Addressing oil ministers from the six-nation Gulf Cooperation Council yesterday, Naimi warned that rising oil prices would affect economic growth across the globe, mainly in developing economies.
“Oil prices rose in March to levels not seen since 2008, which may adversely affect the global economy, particularly the economies of developing nations and emerging countries, as well as negatively impact global oil demand,” he said.
He said in a speech that Gulf oil-producing nations have succeeded in their efforts to stabilise oil markets. “Our countries have exerted major efforts to restore global oil market stability, a feat that has actually been achieved,” Nuaimi said.
“Stability has been restored and oil prices returned to levels which are suitable to both consuming and producing nations and to the global economy and its growth.” He said that oil prices remain high and that he wished to see them at a lower level. “They are still high and we would like to see Brent at $100,” he said, adding that the “market determines the prices”.
The Saudi Minister said that the GCC should be seeking other energy resources and to decrease the dependence on oil and natural gas. Nuaimi noted that Qatar would be hosting the 18th conference for the United Nations Framework Convention on Climate Change (UNFCCC) and the Kyoto Protocol, scheduled for next month, stressing it was important to support Qatar to make the conference a success.
Nuaimi said that the kingdom has been pumping crude “based on demand,” adding that production varied between 9.7 million barrels per day and 10.1 million b/d this year. “Sometimes 9.7m b/d, other times 9.9m b/d... The highest this year it was 10.1m b/d,” he said.
Saudi Arabia in March reportedly became the world’s largest oil producer after increasing its production to 9.923m b/d, topping Russia’s output of 9.920m b/d.
World oil prices are already facing pressure as the IMF cut its forecast for Chinese economic growth this year to 7.8 percent, while the World Bank said it expected the world’s second-largest economy to grow at a slower than expected 7.7 percent. Both institutions have slashed their forecasts for global economic growth.
Oil prices jumped, snapping a string of two lower settlements, as the threat of supply disruption in a tense Middle East countered concerns about slower growth and resulting sluggish demand for oil.
While escalating turmoil on the border of Turkey and Syria lifted Brent more than 2 percent and US crude futures more than 3 percent, surging US petrol and strong heating oil futures also lent support to crude.
Brent November crude rose $2.38 to $114.20 a barrel by 12:58pm EDT (1658 GMT), having reached $114.55, highest since September 18. US November crude was up $2.82 at $92.15 a barrel, after reaching $92.42 and moving back above the 100-day moving average of $89.86.
The US crude strength reduced its deficit to Brent, after Brent’s premium moved above $23 a barrel intraday. Delays in the October loading of North Sea Forties cargoes and the Middle East uncertainties have helped push Brent’s premium to its highest since October 2011. Agencies