2007 News Story

Oil Minister: Markets are well supplied

Minister of Petroleum and Mineral Affairs Ali Al-Naimi said today that while Saudi Arabia is concerned about rising oil prices, global markets are well supplied and there are sufficient inventories.

“We observe with great concerns the recent escalation of oil prices, but we believe that, the world market is well supplied and the petroleum inventories are comfortable,” Al-Naimi said in an address at the Middle East Asia Energy Summit in Singapore.

“Fundamentals do not support current high petroleum prices. The move to such high prices has been supported by the weakening of the US dollar, speculation, geopolitics, and the fear of a major disruption of supplies.”

Al-Naimi remarked that Saudi Arabia supplies Asia with more than 4.5 million barrels per day of oil, and that the Kingdom is committed to continue supplying the Asian nations with the oil they need to fuel their economic growth.