RIYADH — Minister of Petroleum and Mineral Resources Ali Bin Ibrahim Al-Naimi said on Thursday that what the international petroleum market is going through now is an incidental problem, caused by the combination of factors all at one time. In an interview with the Saudi Press Agency which inquired about the current oil market situation, he said, “I am optimistic by nature, and I know that what the market is going through now is an incidental problem caused by the combination of several factors all at one time, including the slowdown of global economic growth significantly and increased oil supplies from several areas, particularly from high-cost areas from non-OPEC countries, at a time of slowing global demand growth for oil more than expected.” Asked about what the Organization of Petroleum Exporting Countries (OPEC), particularly the Kingdom, can possibly do to restore balance to the market, he replied: “The share of OPEC, as well as of the Kingdom of Saudi Arabia in the global market have not changed for several years, which is in the range of 30 million barrels daily for OPEC of which about 9.6 million barrels per day is the production of the Kingdom, while the production of other non-OPEC has been increasing constantly.” He added, “In a situation like this, it is difficult, if not impossible, that the Kingdom or OPEC would carry out any action that may result in a reduction of its share in market and an increase of others' shares at a time in which it is difficult to control prices; thus, we lose the market and lose the prices together. He added: “OPEC countries sought during the past month, as happened in previous times, for the cooperation of other producing countries outside the organization, but these efforts have not been successful.” On the Kingdom's being affected by the current decline in prices, he said, “I would like to point out that the Kingdom has a strong economy, a global excellent reputation, a sophisticated petroleum industry, customers numbering about eighty companies in most countries of the world, and huge financial reserves. The Kingdom has executed huge projects in infrastructure and development of petroleum, mining, petrochemical and other industries in a solid manner during the past ten years, making the Saudi economy and industry able to withstand temporary fluctuations in the income of the Kingdom from oil, especially as price fluctuation in markets of commodities, including oil, is normal.” On the future of the oil market, the minister told the Saudi Press Agency: “I am optimistic about the future, what we are facing now, and facing the world is a temporary and transient state. The global economy, particularly the economies of emerging countries, will resume growth steadily, and then demand for oil will also grow.” Minister Al-Naimi added that “there are incorrect information and analyses that are circulated from time to time, such as linking petroleum decisions with political objectives. These erroneous analyses will undoubtedly be exposed and proved wrong, helping to return the balance to the market.” He further said: “We must not forget the negative role being played by speculators in the international oil market, where they are pushing prices in this direction or that, to achieve financial returns, which contributes to sharply fluctuation of prices.” The Minister concluded by saying: “We, in the Ministry of Petroleum and Mineral Resources, like to work silently, in order to achieve the best benefits and interests of the Kingdom, at short, medium and long terms, but in the end, others will see that what we are doing will yield the best results for the Kingdom, which is proceeding in its balanced policy firmly and strongly, based on a wise leadership, a strong economy and a solid global petroleum industry so as to achieve our goals.” — SPA
