A senior state oil company official said that
Saudi Arabia is ready to increase its oil output in the coming months to a new
record so as to meet a rise in global demand, despite increased domestic use.
Mr Ahmed Al-Subaey, Saudi Aramco’s executive director, for marketing, said that
the world’s top oil exporter was already talking to prospective Indian buyers
for additional oil.
Saudi Arabia increased production in May to around 10.3 million barrels per day
its highest rate on record as a result of increased global demand.
Any increase in production in a market which already faces a glut would signal
that OPEC is unrelenting in its decision to maintain global market share.
The strategy is seen as a major factor in the sharp decline in oil prices over
the past year.
Mr Al-Subaey said after meeting Indian oil officials in New Delhi that “We have
plenty of crude. You are not going to see any cuts from Saudi Arabia.”
Saudi Arabia has historically lowered its oil exports during the summer months
when domestic demand peaks due to scorching temperatures and the need to power
air conditioning.
He said that “We have enough in reserves and we have enough production to do
so. We will match whatever the need is. If the market requires it, we will
provide it.”
Last Friday, the Organization of the Petroleum Exporting Countries agreed to
leave its output policy unchanged for another 6 months.
India was expected to be the main demand growth engine in the second half of
this year while Chinese oil demand was stabilizing.
Source : steelguru