Saudia says oil price hike without justification

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Saudia says oil price hike without justification

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Saudi oil minister said Monday high price of crude was not justified by market fundamentals.

10 September,2012 06:04 pm

Saudi Arabia is concerned about rising oil prices in the international oil market. The current high price of oil is simply not supported by market fundamentals, he said in a statement.The market is well balanced, forward cover remains within an acceptable range and inventories are more than adequate, Naimi added.He said the oil-rich kingdom remains ready to ensure adequate supply of oil to the international market.Saudi Arabia will, as always, take all necessary steps to ensure the market is well supplied and to help moderate prices -- and we will meet any additional demand from our customers, he said.We will continue to work in collaboration with other Gulf Cooperation Council nations, and with OPEC to defend the stability of the oil market, he added.Oil prices rose Monday on hopes of more US financial stimulus aimed at boosting the worlds biggest economy, a prospect that was helping to offset disappointing Chinese data, analysts said.Brent North Sea crude for delivery in October gained 73 cents to $114.98 a barrel in London morning trade.New Yorks main contract, light sweet crude for October, climbed 15 cents to $96.57 a barrel.Saudi Arabia in March reportedly became the worlds largest oil producer after increasing its production to 9.923 million barrels per day, topping Russias output of 9.920 million.Other reports said the OPEC heavyweights production averaged 9.94 million barrels per day in the first half of 2012.