Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

Saudi Arabia says won't limit oil production, can meet customer demand

Published 30/12/2015, 14:07
Updated 30/12/2015, 14:07
© Reuters. File picture of Saudi Arabian Oil Minister al-Naimi talking to journalists before a meeting of OPEC oil ministers at OPEC's headquarters in Vienna

KHOBAR, Saudi Arabia (Reuters) - Saudi Arabian Oil Minister Ali al-Naimi said the kingdom, the world's top crude exporter, does not limit its output and has the capacity to meet additional demand, state television Al Ekhbariya reported on Wednesday.

"The increase in production depends on ... the demand of the customers. We meet our customers' demand, there is no longer a limit to production, as long as there is demand, we have the ability to meet demand," Naimi said.

The Wall Street Journal, which reported the same comments as Al Ekhbariya, also quoted Naimi as saying Saudi Arabia's oil policy was "reliable" and would not change. He has made similar comments in the past when asked about plans to boost production.

On Monday, Saudi Arabia, its finances hit by low oil prices, announced plans to shrink a record state budget deficit with spending cuts, reforms to energy subsidies and a drive to raise revenues from taxes and privatisation.

Saudi Arabia's planned cuts in spending and energy subsidies signal the kingdom is bracing for a prolonged period of low oil prices which this month hit their lowest levels since 2004.

"We expect - from now on - efficiency of energy consumption to increase, which means the energy consumed will be reduced," Naimi said, in reference to the recent subsidy reforms.

On Monday, Saudi Aramco's chairman Khalid al-Falih said his country was better equipped to wait out low oil prices than other producers.

The comment by the head of the state oil company was in linewith Saudi Arabia's no-cut oil policy on output despite a sharpfall in global oil prices since mid-2014.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Saudi Arabia led a shift in OPEC policy last year by rejecting calls to reduce production to support prices, choosing instead to defend market share.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.