Naimi Issues Statement on Oil Situation Riyadh, March 14, SPA -- Minister of Petroleum and Mineral Resources Eng. Ali Al-Naimi, in statement to SPA, while commenting on the current developments at the petroleum market, said the current increase in the prices of the crude oil is unjustified in the light of the current supply and demand, because the current stockpile is compatible with the requirements of the market. "The sustained strength in crude oil prices is not supported by current oil fundamentals as both inventories and forward demand cover are within historic ranges, while market price structure is in contango. He added that " Notwithstanding the uncertainty prevalent in assumptions about future supply and demand levels, projections show an increase in demand in the latter part of the year which would require additional crude oil to satisfy. Accordingly, to adequately fulfill this year's additional demand, Saudi Arabian output shall be increased from current levels at a later time this year. Furthermore, Saudi Arabia is of the opinion that OPEC production ceiling should be adjusted upwards by 500 MBD during the forthcoming ministerial meeting. --MORE 1443 Local Time 1143 GMT
