Saudi Oil Minister Ali Naimi said Tuesday that crude oil supplies flowing through global markets are fully adequate for present demand. He noted that the kingdom keeps a spare production capacity of 3.5 million barrels per day in reserve, available for deployment if circumstances require it.
The statements were distributed by Saudi state news agency SPA. Naimi gave no indication that supply shortages are driving market conditions, presenting current availability as consistent with actual market needs.
Turning to prices, the minister attributed recent crude price increases to financial speculation rather than to any real change in the balance of supply and demand. He argued that the core fundamentals of the oil market do not support the levels at which crude is currently trading.
Saudi Arabia's position, as stated by its oil minister, is that ample supply exists and that the kingdom has the capacity to step up output if conditions change.
Historical summary. TurkishPress restated this wire report, first published in March 2011, in its own words.