Saudi's surplus: spare oil to sell?
Saudi Arabia will probably produce more oil than it supplies to the market in the fourth quarter, boosting a buildup in inventories, according to the Gulf Oil Review.
"As domestic demand dips in the next month, Saudi production is likely to exceed supply in the fourth quarter, leading to further accumulation of stocks inside and outside the kingdom,- the review said in a report received yesterday.
Saudi Arabia is ready to meet any increase in demand for its oil and hasn't changed its preferred for an oil price of $100 a barrel, the report said, citing unidentified sources in the country's Oil Ministry.
The report is published by Petroleum Policy Intelligence, a researcher in Winchester, UK, founded by Bill Farren-Price.
Meanwhile, Global oil prices fell yesterday as traders reassessed the impact of Hurricane Isaac on output in the rig-heavy US Gulf Coast, analysts said. Brent North Sea crude for delivery in October shed 92 cents to $111.66 a barrel in late morning London deals.
New York's main contract, light sweet crude for October retreated 79 cents to $95.54 a barrel.
- Reading the signs behind plummeting oil prices: Saudi-led price war or simple supply and demand?
- Keeping up the fight for market share? Saudi oil production inches up in November
- Saudi Readymix exceeds production goals for 2006
- First it was the US and shale, but now, Saudi Arabia's toughest oil contender is emerging right next door