The Petroleum Cooperation Committee of Gulf Cooperation Council (GCC) states meets under the chairmanship of Saudi Minister of Petroleum and Mineral Resources Ali Al-Naimi in Riyadh, Tuesday. During the meeting participants discussed the building of a new Gulf petroleum and gas joint market. — SPA RIYADH – Saudi Arabia is satisfied that oil prices have fallen to a level that does not hamper global growth, Minister of Petroleum and Mineral Resources Ali Al-Naimi said Tuesday. “Our countries have exerted major efforts to restore global oil market stability, a feat that has actually been achieved,” Naimi told a meeting of Gulf Arab energy ministers in Riyadh. “Stability has been restored and oil prices returned to levels which are suitable to both the consuming and producing nations and to the global economy and its growth,” he said. Addressing fellow ministers, Naimi warned that rising oil prices would affect economic growth across the globe, mainly in developing economies. “Oil prices rose in March to levels not seen since 2008, which may adversely affect the global economy, particularly the economies of developing nations and emerging countries, as well as negatively impact global oil demand,” he said. In a press statement after the meeting, Naimi said that Saudi Arabia has a surplus of oil production and has the ability to meet demand in the event of any necessity for it. He stated that the Kingdom has the capacity to produce 12 million barrels of oil per day but that the global demand does not need it now. He added, if “we produced about 10 million barrels, we will have 2.5 million barrels as reserves.” “We continued our policy of allaying market fears, providing supplies when needed and limiting high price fluctuations during the ensuing months till this present day,” said Naimi. Oil prices have fallen from a peak for the year of $128 a barrel in March, with brent trading at around $112 Tuesday. The Saudi oil minister said he would like to see prices fall further. “We would like to see the price moderating. Today Brent is $111, I think, or $112, we would like to see it lower, toward $100,” he told reporters after the meeting. Naimi identified $100 a barrel as a suitable price during a visit to Japan, a major buyer of Saudi crude, earlier in the year. World oil prices are already facing pressure as the IMF cut its forecast for Chinese economic growth this year to 7.8 percent, while the World Bank said it expected the world's second-largest economy to grow at a slower than expected 7.7 percent. Both institutions have slashed their forecasts for global economic growth. Naimi said four candidates are vying for the post of OPEC secretary general.– Agencies
