Saudi Arabia determined to curb oil prices

SEOUL - Reuters

Riyadh is working with OPEC members to curb oil prices, al-Naimi says. REUTERS photo

Top oil exporter Saudi Arabia is determined to bring down high oil prices and is working with fellow OPEC members to accomplish that, Oil Minister Ali al-Naimi said on April 13. Brent crude has risen about 13 percent this year, trading above $120 a barrel on April 13, threatening a nascent recovery of the global economy.

“We are seeing a prolonged period of high oil prices,” Naimi said in a statement during a visit to Seoul. “We are not happy about it. (The Kingdom of Saudi Arabia) is determined to see a lower price and is working towards that goal.”

The influential Saudi oil minister earlier this year identified $100 a barrel as an ideal price for producers and consumers earlier this year.

Concern of a supply shortage due to production problems in some producing countries and as U.S. and European sanctions target exports from OPEC’s second-largest producer Iran have helped keep Brent crude well above that mark.

Naimi reiterated that there were no supply shortages in the global oil market and the kingdom stood ready to tap into its spare capacity of 12.5 million barrels per day if more crude was needed.

The International Energy Agency said on April 12 that the oil market had broken a two-year cycle of tightening supply conditions as demand growth weakens and top exporter Saudi Arabia increases output.