Saudi Arabia sees market balancing

Khalid al Falih, Saudi Arabia’s minister of energy, industry and mines, has said the global oil markets have found their balance. Speaking in the US late on Wednesday, Al Falih also noted that markets had responded accordingly.

“We see that the market has returned into balance. Supply and demand are almost equal. The markets have started to improve in response to this balance,” Al Falih told reporters, adding that the world would “just have to carry the overhang of inventory for a while until the system works it out.”

The oil price recovery has stagnated in recent days, with WTI and Brent prices struggling to convincingly exceed the USD 50-threshold. Crude futures on Thursday stood at USD 49.88 and USD 49.13 per barrel for Brent and WTI, respectively.

The minister signalled that Saudi Arabia would also once more take up the mantle of swing producer. “The kingdom’s oil policies are rooted in responsibility, and Saudi Arabia is seeking to maintain that balance while also giving heed to moderate prices for producers and consumers,” Al Falih said.