Saudi will not flood oil market

KUWAIT: Saudi Arabia, the world’s biggest oil exporter, won’t boost output to capacity and flood the market, the kingdom’s Energy Minister Khalid Al Falih said weeks before Opec meets to discuss ways to stabilise prices.

Saudi Arabia isn’t concerned about global demand in spite of a drop in oil prices and a slower economy, Al Falih said in an interview with Al Arabiya television. The country is able to pump as much as 12.5 million barrels a day of oil, he said in comments broadcast during an official visit to buyers in Asia, its biggest market, including China.

“The market is now saturated with stored crude at beyond usual levels and we don’t see in the near future a need for the kingdom to reach its maximum capacity.” Demand in China is “very healthy” and consumption in India is “very good,” he said. Saudi domestic use is rising due to two new refineries in Yanbu and Jubail which have raised consumption by a combined 800,000bpd, he said.