Davos: OPEC says Saudis not raising output
OPEC's top producer Saudi Arabia has not raised output, OPEC's Secretary-General Abdullah al-Badri said on Thursday, adding the group would raise production when it sees imbalances in the market.
January 28, 2011 / 09:59 IST
OPEC's top producer Saudi Arabia has not raised output, OPEC's Secretary-General Abdullah al-Badri said on Thursday, adding the group would raise production when it sees imbalances in the market.
"According to information I receive from Saudi Arabia it is almost the same production as last month, so I don't see any increase in Saudi Arabia," al-Badri told Reuters Insider Television."Brent is increasing not because of a shortage but because of technical problems... The price you are talking about is not the real price. The market got disconnected between the physical and price"."I would like to say there is no physical shortage in the market. When OPEC sees an imbalance in the market, OPEC will act to balance the market," he said.The International Energy Agency (IEA) said earlier this month Saudi Arabia had boosted output to cool an oil price rally, a view that OPEC and Saudi major customers have denied."I don't know where the IEA got this number from but also the market reaction was negative. They did not agree with the IEA that Saudi Arabia has increased production," said al-Badri.He said OPEC expects global demand to rise by 1.2 million barrels per day this year, almost half the growth of last year."I'm sure 100% when looking at the markets there is no shortage in the market, there is plenty of oil in the market"."If you have a floating and commercial stocks for 60 days and we (at OPEC) are producing 29.3 million barrels per day how are you telling me there is a shortage?""I will see a shortage when the stocks begin depleting. From the numbers I'm getting we all agree there is no shortage and I'm emphacising this and I'm responsible for this," he said."When the price gets out of control, we will try to act and balance the market," he said but added. "The price you are talking about is not the real price"."It is not 100 dollars. Unfortunately, this oil you are talking about -- WTI and Brent -- is in small quantities now, they are diminishing in the oil market," he added. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
