Petroleum and Mineral Resources Minister Ali Al-Naimi said in Seoul on Thursday that the global oil market is well balanced and that his country, the world’s top exporter, is ready to supply whatever volume of crude is needed to meet demand.
Addressing an energy forum in the Korean capital, Al-Naimi stressed the significance of oil in promoting international economic growth and ensuring the progress and prosperity of nations. “We are the largest suppliers of energy to Asian countries and this status will continue for a long period of time,” he said.
“For the record, oil market fundamentals are good. The market is well-balanced,” Al-Naimi said at the event attended by market leaders. “I repeat the message that Saudi Arabia is willing and capable to meet demand.”
Brent crude futures held steady above $111 a barrel on Thursday, as investors waited to see whether diplomatic efforts to eliminate Syria's chemical weapons would avert the threat of US military action, which could lead to the disruption of oil supplies. US Secretary of State John Kerry and Russian Foreign Minister Sergei Lavrov are to meet in Geneva to talk about Syria's chemical weapons arsenal.
Al-Naimi blamed speculators for driving up prices. The Brent for October settlement gained as much as 96 cents to $112.46 a barrel on the London-based ICE Futures Europe exchange, and was pegged at $112.17 as of 1:11 p.m. London time. The more actively traded November contract was up 76 cents at $110.95. Demand for crude from the Organization of Petroleum Exporting Countries in 2014 will be 29.2 million barrels a day, 1.3 million lower than the group’s current production levels, the IEA said on Thursday in a report.
The Middle East accounted for about 35 percent of global oil output in the first quarter of this year, according to the IEA.
Syria borders Iraq, OPEC’s second biggest producer after Saudi Arabia.
“Traders are reluctant to change their positions, as the outlook for Syria's problem remains uncertain,” said Koichi Murakami, analyst at Daiichi Commodities Co Ltd. “Everyone is closely watching how Syria's situation will develop,” he added. “Another focus in the market is the US financial policies to be unveiled next week,” Murakami said.
