Minister of Petroleum and Mineral Resources Ali bin Ibrahim Al-Naimi today confirmed that his Ministry was closely monitoring the current developments in the international oil market resulting from Iraq's halt of its oil exports and evaluating its potential impact on the market in terms of any imbalance between supply and demand and effect of any such development on the price rates.

In a Statement to the Saudi Press Agency, he said the Kingdom of Saudi Arabia along with all the oil producing countries was interested in the stability of the oil market and avoiding detrimental fluctuations which might negatively affect the world economy on the one hand and the oil industry on the other.

He added that: "Our aim was to isolate non-economic effects from the oil trade and leave it as a basic source of energy that meets world demand year after year in a way that would positively affect the economics of our countries. Large changes in supply or demand, as well as fluctuations caused by non-economic factors, were not in the interest of oil industry or oil producing countries which depend on it as a main source of income."

He went on to say that the Kingdom of Saudi Arabia was currently holding consultations with Opec members, as well as the International Energy Agency in its capacity as a representative of the consuming countries, to study the current situation in the oil market, and that, in case of supply disorder, these consultations would crystallize in a practical clear position that would guarantee the stability of oil market, based on the spirit which dominated the recently-concluded international energy forum held in Riyadh.

Concluding his statement, Al-Naimi said the surplus productive capacity of the Opec member states amounts to approximately 2.5 million barrel per day at the current time whereas the Kingdom's share was not less than 70% of that total, a share which guarantees the stability of the market and prevents any decrease or lack of supply.

Source: SPA