• 4 minutes Europeans and Americans are beginning to see the results of depending on renewables.
  • 7 minutes Is China Rising or Falling? Has it Enraged the World and Lost its Way? How is their Economy Doing?
  • 13 minutes NordStream2
  • 2 days Monday 9/13 - "High Natural Gas Prices Today Will Send U.S. Production Soaring Next Year" by Irina Slav
  • 6 hours California to ban gasoline for lawn mowers, chain saws, leaf blowers, off road equipment, etc.
  • 17 hours "Here is The Hidden $150 Trillion Agenda Behind The "Crusade" Against Climate Change" - Zero Hedge re: Bank of America REPORT
  • 1 day "A Very Predictable Global Energy Crisis" by Irina Slav --- MUST READ
  • 1 day GREEN NEW DEAL = BLIZZARD OF LIES
  • 23 hours An Indian Opinion on What is Going on in China
  • 1 min Nord Stream - US/German consultations
  • 1 day Can Technology Keep Coal Plants Alive and Well?
  • 2 days Two Good and Plausible Ideas about Saving Water and Redirecting it to Where it is Needed.
  • 2 days Succession Planning in Human Resources for Vaccinated Individuals in the Oil & Gas Industry
  • 4 days Perfect Energy Storm in Europe: turning our back on fossil fuels is easier said than done!
  • 22 hours U.S. : Employers Can Buy Retirement Security for $2.64 an Hour
  • 1 day Storage of gas cylinders
Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

Uncertainty Rises On Saudi Oil Minister's Comment

Global crude oil supply might need some cuts, Saudi Arabia’s Energy Minister Khalid al-Falih told state TV channel al-Ekhbariya as quoted by Reuters, to offset recent increases. “We (have) entered the stage of worrying about this increase,” the official said, adding any reduction in supply would go towards ensuring the stability accomplished as a result of the OPEC+ production-cutting pact sealed at the end of 2016.

The minister’s remarks are somewhat surprising as they come amid worry about loss of supply from Iran once U.S. sanctions enter into effect next month. However, there has also been new concern among market players: that global economic growth may be slowing down and will continue to slow down, ultimately hurting oil demand.

What makes the comments confusing, however, is the fact they come on the heels of earlier statements by Falih that Saudi Arabia is ready to increase production to up to 12 million bpd and also invest in boosting its spare capacity.

“I don’t rule out that the Kingdom’s production which has been 9-10 (million barrels per day) over the last decade or so will be a million to two millions (barrels) higher,” the energy minister told the Saudi Gazette just this Tuesday.

In the same report, Falih was quoted as saying global oil demand would grow from 100 million bpd to 120 million bpd over the next 30 years.

Earlier this month, Falih had said Saudi Arabia will continue boosting its production of crude oil in November as well, after two months of increases, with the October daily rate estimated at 10.7 million bpd. He also made sure the message is clear: "Given the disruptions that have taken place, oil would be easily in the three-digit range had it not been for the extra efforts the kingdom had done," he said as quoted by S&P Global Platts at an industry event in India, "Saudi Arabia has proactively, deliberately and responsibly invested in its spare capacity."

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment
  • Mamdouh G Salameh on October 25 2018 said:
    Saudi oil minister Mr Khalid al-Falih is blowing hot and cold. On the one hand, he is reminding the world of the role Saudi Arabia plays in stabilizing oil prices by its ability to raise its oil production to 12 million barrels a day (mbd) when needed. He is also giving a clear hint to the Trump administration that any punishment against Saudi Arabia with regard to the murder of the Saudi journalist will be met by a significant cut in Saudi oil production thus sending oil prices soaring.

    On the other hand, he is prevaricating about his promise to raise Saudi production to 12 mbd. He knows that Saudi Arabia couldn’t raise its oil production beyond the 400,000 barrels a day (b/d) that it added to the market two months ago. And even these 400,000 b/d did not come from a rise in production but from stored oil on board oil tankers and on land.

    And with the failure of the talks between Saudi Arabia and Kuwait to agree to restart the oilfields in the Neutral Zone which is shared equally between them, Saudi Arabia has lost the opportunity to add 250,000 barrels a day (b/d) more to the market on top of the 400,000 b/d it already added two months ago.

    Saudi Arabia has no spare production capacity.

    Dr Mamdouh G Salameh
    International Oil Economist
    Visiting Professor of Energy Economics at ESCP Europe Business School, London

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News