Saudi Arabia working to keep oil prices "adequate" for global market
Oil prices have fallen to levels that are adequate for global economic growth, Saudi Arabia Oil Minister Ali al-Naimi said on Tuesday.
“The market has stabilized again and prices have come down to adequate levels for consumers and producing countries, and for the global economy and its growth,” Naimi told energy ministers of the Gulf Cooperation Council countries in a speech at a meeting in Riyadh, according to Reuters.
Brent crude oil was trading around $112 a barrel on Tuesday, down from over $117 in mid-September.
Naimi said that the oil-rich Gulf kingdom will work to satisfy global energy markets and to “moderate” prices.
“We will provide the markets with what they need,” Naimi told reporters on the sidelines of the ministerial meeting in Riyadh. “We will work to moderate prices.”
World oil prices are already facing pressure as the IMF cut its forecast for Chinese economic growth this year to 7.8 percent, while the World Bank said it expected the world’s second-largest economy to grow at a slower than expected 7.7 percent.
Both institutions have slashed their forecasts for global economic growth.
Oil prices recovered in Asian trade on Tuesday over tensions between Syria and Turkey, but bad news on the regional and global economy fostered an atmosphere of caution, according to AFP.
New York’s main contract, light sweet crude for delivery in November, was up 85 cents to $90.18 a barrel in afternoon trade, while Brent North Sea crude also for November advanced 73 cents to $112.55.
In September, Naimi said the OPEC powerhouse was concerned about rising prices, pledging the kingdom's readiness to satisfy global demand.
Saudi Arabia in March reportedly became the world's largest oil producer after increasing its production to 9.923 million barrels per day, topping Russia's output of 9.920 million bpd.
Other reports said the Gulf heavyweight’s production averaged 9.94 million bpd in the first half of 2012.