Crude hits $146/bbl; Saudi promises more supply

Crude prices hit a fresh record above USD 144 per barrel as a drop in US crude inventories stoked supply concerns. Crude is now trading at USD 146 per barrel.

Ibrahim Al Muhanna, Advisor to Minister of Petroleum, Saudi Arabia says, “We think there are many factors that affect the oil price. One of the most important is the speculation. As the funds move in the future market, these funds in the futures market push the price higher and higher. With regard to supply and demand, it's well-balanced, and actually, the supply is more than the demand.”

“We never know about the future. There are different predictions about the future. Some the oil companies predict higher demand in the future. But we're talking about this year, and next year, and definitely, supply and demand match each other and there is more supply. Another important point is that oil producers like Saudi are increasing their production capacity. We, in Saudi, have invested USD 129 billion to increase production, upstream and downstream. Production, next year, will go up to 12.5 million bpd (barrels per day).”