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Page added on February 25, 2015

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Saudi’s Naimi says oil demand growing as prices stabilise

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Saudi Arabia’s Oil Minister Ali al-Naimi said on Wednesday that oil demand is growing and markets are calm, in some of his first public comments since the price of crude rebounded from a near six-year low.

Oil crashed by 60 percent between June and January to a post-2009 low of $45 a barrel, with losses accelerating after OPEC decided in November to hold output at 30 million barrels per day to try to preserve its market share.

International benchmark Brent has since recovered to around $60 a barrel as energy companies have slashed investments in future production, and as the number of drilling rigs operating in the fast-growing U.S. shale patch has fallen.

“Markets are calm now … demand is growing,” Naimi said on the sidelines of a conference in the port city of Jizan, southwest Saudi Arabia.

Naimi was the driving force behind OPEC’s policy shift at its November meeting, when the group decided not to cut output. He suggested on Wednesday he is satisfied with how the move has played out, saying the market needs a period of stability.

“I don’t like to talk about oil because we want calmness,” Naimi said when questioned by reporters.

“We don’t want anything that creates volatility in the market.”

A senior Gulf OPEC delegate said on Tuesday that prices around $60 a barrel are “OK for now”, despite talk from members Nigeria and Ecuador of the possible need for an emergency meeting before the group’s next scheduled gathering in June.

The 12-country group’s decision sent oil prices sinking to levels not expected even by core Gulf OPEC producers, who had blocked other members’ call for a cut. But there are signs the strategy of letting prices fall is beginning to take effect.

Earlier this month OPEC sharply increased its forecast for demand for its crude this year, in a move some say vindicated the group’s policy.

Other OPEC members are still struggling with the effects of lower oil prices, however, after growing used to oil averaging more than $100 a barrel between 2011 and 2013.

While many Gulf members are insulated from the price fall by large cash reserves, members including Venezuela, Nigeria and Iraq face a severe budget squeeze.

Ecuador’s President Rafael Correa said on Tuesday oil prices are “unnecessarily” low

 

reuters



4 Comments on "Saudi’s Naimi says oil demand growing as prices stabilise"

  1. Plantagenet on Wed, 25th Feb 2015 12:04 pm 

    Oil prices will stay low as long as there is an oil glut. If the Saudis are right, then demand is growing and we are now moving towards the end of the oil glut.

  2. Davy on Wed, 25th Feb 2015 12:13 pm 

    Planter you need to hitch up with Marmie and show me some Freddy porn that actually shows real growth then I will bow down and kiss your Glut.

  3. Speculawyer on Wed, 25th Feb 2015 4:10 pm 

    Now if anyone wants to divine a conspiracy theory to the Saudi’s motivation not to reduce production . . . this could be it. Let the oil price drop for 6 months or so in order to keep people addicted. Let the consumers go out and buy SUVs and trucks that will last 17 years which they’ll have to fill with gasoline to continue to drive.

    Every drug dealer knows that free samples are a great way to get new customers.

  4. GregT on Wed, 25th Feb 2015 8:48 pm 

    “In his 2013 book, Conspiracy Theory in America, author Lance deHaven-Smith traced the term “conspiracy theory” back to a CIA propaganda campaign that was designed to discredit doubters of the Warren Commission’s fake search into who assassinated President Kennedy in Dallas. In this light, the use of this pejorative term is obviously a tactic to shame and humiliate those who saw through the ulterior motives of the commission, and thus effectively censor out or even banish anyone who questions official government accounts.”

    “why do so many average American citizens prefer to think that our government would be telling the truth about the events that led America into a series of military misadventures and the current quagmire that never ends?”

    “Admittedly, many citizens have been effectively brain-washed and many have been too busy, too distracted, too exhausted, too TV-addicted, too mesmerized by entertainment or sports to have even bothered to look at the abundance of evidence that overwhelmingly disproves much of what the powers-that-be want us to believe about world or domestic affairs.”

    “There are many citizens who may be cognitively unable to separate truth from fiction and have succumbed to the continuous barrage of the Big Lie propaganda that is so rampant in the media (with no balancing information allowed that would expose the real truth). In other words, many good folks simply believe what they have been told. Without good information, it is hard to see clearly.”

    “Lack of critical thinking skills and borderline intelligence can be factors in accepting untruths as can just being unable to think clearly because of the chronic use of brain-altering psychiatric drugs or mind-altering illicit drugs or alcohol.”

    “Many Americans only get their news and opinions from pseudo-patriotic, pro-corporate sources, which operate under water-tight political agendas that prohibit the publication of any information that would expose official secrets.”

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