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Ali Al-Naimi

Oil price drop not hampering global growth: Al Naimi

Ali Al-Naimi 42%

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Saudi Arabia is satisfied that oil prices have fallen to a level that does not hamper global growth, Saudi Oil Minister Ali Al Naimi said on Wednesday, signalling success in a Gulf Arab effort to keep oil prices under control despite a halving of Iranian exports because of Western sanctions. “Our countries have exerted major efforts to restore global oil market stability, a feat that has actually been achieved,” Al Naimi told a meeting of Gulf Arab energy ministers in Riyadh. “Stability has been restored and oil prices returned to levels which are suitable to both the consuming and producing nations and to the global economy and its growth,” Naimi said.

 

Opec’s biggest oil producer is likely to continue pumping crude at a 30-year highs of around ten million barrels daily through October, Naimi said, helping compensate for a cut in exports from Iran, a fellow member of the Organisation of the Petroleum Exporting Countries. Riyadh has support from Gulf allies Kuwait and the UAE in a campaign for lower prices that may raise complaints from others in Opec when the group meets to set output policy in December.

 

Sanctions by the US and Europe on Iran had threatened to backfire by pushing up oil prices, impeding the global economy and diluting the impact on Iran’s oil revenues of the measures against Teheran’s nuclear programme. But the extra oil from Riyadh has helped compensate for a halving of Iranian exports and reversed a spike in pri. es that took Brent crude to $128 a barrel in March.

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(Reuters) / 10 October 2012

Read full article: http://www.khaleejtimes.com/biz/inside.asp?xfile=/data/energy/2012/October/energy_October17.xml&section=energy

2012-11-06


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