Saudi Arabia says Brent oil should drop to US$100 a barrel
Source: BI-ME with Bloomberg , Author: Posted by BI-ME staff
Posted: Sun May 13, 2012 10:40 am
china wholesale market

SAUDI ARABIA. Crude prices should fall because global supply is outweighing demand, according to Saudi Arabia’s oil minister, Ali al-Naimi.

“We want a lower price than where it is now,” al-Naimi said in Adelaide today. “We need to get the price to a level of around US$100” a barrel for London’s Brent crude, he said. Saudi Arabia is the world’s biggest oil exporter.

Brent, a benchmark price for more than half the world’s crude, has dropped 6 percent this month amid concern Europe’s debt crisis will worsen and curb fuel demand. OPEC is working to bring prices down, the group’s Secretary-General, Abdalla el- Badri, said May 3.

The producer group, scheduled to meet next month, is pumping 8.3% more crude than it considers necessary this quarter, figures from the Vienna-based group show.

Brent crude for June settlement dropped 0.8% in the week to May 11 to US$112.26 a barrel on the London-based ICE Futures Europe exchange. West Texas Intermediate oil for June delivery slid 2.4% to US$96.13 a barrel.

Oil supply outweighs demand by 1.3 million to 1.5 million barrels a day, al-Naimi said today. Demand may rebound in the second half of 2012, he said.

Saudi Arabia increased output last month to the highest in more than three decades, according to data it provided to OPEC. The kingdom pumped 10.1 million barrels a day in April, about 200,000 barrels more than the previous month, the group said in a May 10 report. That’s the highest level since at least 1980, figures from the U.S. Energy Department show.

The kingdom is storing as much as 80 million barrels of crude, according to al-Naimi. It has set aside supplies “on shore in Saudi Arabia, in pipelines, in tanks,” he said in Tokyo last week.

Saudi Arabia still has about 2.5 million barrels a day of spare production capacity, al-Naimi said May 8. It is storing crude “because of the situation in the world,” he said, without elaborating.

Inventories of 80 million barrels are equivalent to less than one day of global consumption, which is forecast by the International Energy Agency at 89.9 million barrels a day this year.

 

MIDDLE EAST BUSINESS COMMENT & ANALYSIS

date:Posted: March 27, 2015
INTERNATIONAL. Yemen's close proximity to Saudi Arabia and its strategic location on one side of the fourth busiest shipping lane for crude oil, raise worries about potential disruptions.
date:Posted: March 27, 2015
UAE. Consumption of luxury goods up 11% in the GCC, according to Bain & Company; China luxury market shows a shift in consumer preferences and ties to the GCC; In the UAE, Chinese represent about 2.5% of overall tourists, but account for 7% of the mall footfall and even bigger part of the spend.
date:Posted: March 26, 2015
UAE. Deloitte Middle East conference addresses recent changes in regulation and tax; Developments such as the refurbished runway at Dubai, the mid-field terminal project at Abu Dhabi, the opening of Hamad international in Doha, showcase the commitment to the aviation sector.
UAE. Consumption of luxury goods up 11% in the GCC, according to Bain & Company; China luxury market shows a shift in consumer preferences and ties to the GCC; In the UAE, Chinese represent about 2.5% of overall tourists, but account for 7% of the mall footfall and even bigger part of the spend.
dhgate