Saudi Arabia Wants to See $100 per Barrel Oil Price
Saudi Arabia, the top exporter of crude, wants to see an oil price per barrel of about $100. Moreover, the country wants to see an increase in the world’s oil inventories before demand rises by the end of 2012. All these were recently expressed by Ali al-Naimi, the Oil Minister of Saudi Arabia.
The most current Brent crude oil price was $112.26. That is way lower than its highest rate of $128 in the month of March this year. Since the early parts of 2011, Brent has been trading at more than $100, keeping fuel prices elevated, a status which threatened to destroy the sensitive world economy.
Saudi Arabia is trying to bring the international benchmark, Brent North Sea, to that level of crude oil prices, Ali al-Naimi added. Being the largest producer of OPEC, the country said that it produced 10.1 million barrels daily in the month of April. That is the highest amount for over 30 years, as it tries to meet increasing demand and limit oil prices.
Current crude oil prices have remained high this year because of concerns regarding the disruption of global oil inventories caused by the sanctions of Europe and the U.S. against Iran. The sanctions are intended to hurt the revenues of the Gulf country’s crude exports and force it to stop its alleged nuclear program.
Last week, Naimi said that oil manufacturers were making enough to handle the sanctions’ effect on the market for crude oil. He also emphasized that oil manufacturers were making 1.3 to 1.5 million barrels daily over demand, which aids in building supplies.
Inventories are equal to about 58 days of demand. However, Saudi Arabia want to see crude stockpiles increase further for the seasonal rise in fuel usage beginning June of this year, said Naimi.
According to the recent statement of the International Energy Agency, oil prices are likely to maintain its high rate even though there is a significant improvement in the global supply and a huge stock build up because of the tensions between the West and Iran.