Saudi Arabia, producers aim to eliminate excess supply

Saudi Arabia, producers aim to eliminate excess supply

Editorial Staff
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According to Saudi Minister al-Falih "oil markets will be able to recover next year''

Saudi Energy Minister Khalid al-Falih stated that producers’ objective is to eliminate excess supply. Speaking to broadcaster Al Arabiya, the Saudi Minister said that ''the oil markets will be able to recover next year''. "Current prices exceed the reference level adopted when the Saudi budget was approved''. The country also committed to continue curbing production during 2018, following the last Opec meeting on 30 November. The largest oil exporter believes that by following this direction, prices will increase and thus its revenues from crude will also improve. The Vienna Agreement followed the words of Saudi Energy MInister Khalid, who before the meeting had spoken of the "perfect alignment" between Opec countries and Russia. Al-Falih, also president of the Opec Conference, recalled how last May the crude stock of member countries exceeded the last five years’ average by some 280 million barrels, but thanks to the work done, this figure had shrank to 140 million barrels in October.