The global oil market looks balanced, Saudi Oil Minister Ali Al-Naimi indicated Sunday, while the secretary general of the Organization of the Petroleum Exporting Countries said some producers need to cut back as Libyan output rebounds. Speaking at the same conference in the Saudi capital with less than a month to go before OPEC meets, the head of the International Energy Agency (IEA) reiterated the major consumer group's concern that stubbornly high oil prices and tight supplies could harm fragile global economic growth. When asked about the current balance between supply and demand, Naimi asked the reporter's view of the oil market. The reporter said he thought the market was balanced, to which the oil minister replied, “I agree with you.” As most crude from the Gulf OPEC countries is exported to Asia, where demand for fuel remains strong despite concern about the euro crisis eroding demand in Europe, Saudi Arabia still sees robust demand for its barrels. “Everything is fine now,” Naimi said when asked about the outlook for oil demand. Saudi Arabia, Kuwait and the United Arab Emirates (UAE) have raised production over the last few months to compensate for the loss of Libyan oil and try to prevent high fuel prices from hindering economic growth after failing to convince OPEC to lift its group production target in June. Oil output from OPEC member Libya has since resumed and risen more rapidly than many expected, while OPEC has trimmed its demand outlook. Naimi said it was too early to predict what might happen when OPEC next meets on Dec. 14. Crude oil prices fell Monday with wary investors withdrawing from the market due to lingering concerns about the European debt crisis, analysts said. New York's main contract, light sweet crude for delivery in January, slid 81 cents to $96.86 a barrel. Brent North Sea crude delivery for January slipped 46 cents to $107.10 in London afternoon deals. OPEC Secretary General Abdullah Al-Badri told reporters at the conference the next meeting in Vienna should be far friendlier.
