Wednesday, April 27

Saudis cut oil production, say there is excess supply

KUWAIT - Saudi of Arabia oil Minister Ali al-Naimi said on Sunday the world market oil was oversupplied and the world's top already had reduced oil exporter production due to weak demand.

Consumers urged OPEC to quickly add to suppress the supply of the rally, created the oil to its highest level in two and a half years in the midst of riots in North Africa and in the Middle East.

"The market is overbalanced..." Our production in February was 9.125 million barrels per day (bpd), in March it was 8.292 million barrels per day. In April, we don't know yet, probably a little higher than March. The reason why, the I you these figures have given you to show that the market is oversupplied, "Naimi told reporters.

Two Saudi-based industry sources told of Reuters last week that the Kingdom had cut production by 500,000 barrels a day in response to weak demand.

OPEC have strongly rejected responsibility for high oil prices officials in recent weeks, but Naimi's words are the clearest indication yet that a need for more oil is that the group is not convinced, and that OPEC also can leave policy unchanged at its June meeting.

The United Arab Emirates on Sunday quoted oil Minister Mohammed bin Dhaen al Hamli, who says of the market well supplied and that was the price of oil not on fundamentals.

"Why should OPEC increase production in June?" There is no need, the market oversupplied and the price is "said on Sunday an Gulf OPEC delegate." not high, due to a lack of security of supply,

The International Energy Agency, which industrial Nations, warned last week high oil prices began to hurt economic growth.

Naimi declined to comment on the current price of crude oil.

Oil fell last week after Goldman Sachs warned that high oil prices demand but rebounded can be undermined for signs of a renewed health in the US economy on Friday.

Saudi Arabia and some other OPEC members most of the oil industry strengthened single-sided oil production after the North African member of the OPEC which shut down uprising in Libya.

Naimi confirmed Saudi Arabia 2 million barrels sold its so-called special blend that State oil company Saudi Aramco as a replacement for Libyan oil produced on the market due to the Libyan unrest was lost which but market sources say demand for the mixture was muted.

A survey of the Reuters News Agency estimated that Saudi Arabia made 9 million barrels per day in March, up from 8.65 million barrels per day in February.

Copyright 2011 Thomson Reuters.

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