Saudi Arabia dismisses calls for more oil output increases

Mohammed M. Abu Bakr, Oct. 14 - Reuters : Saudi Arabia dismissed calls for faster oil output increases on Thursday, saying its efforts with allies were enough and protecting the oil market from wild price swings seen in natural gas and coal markets.

What we see in the oil market today is an incremental price increase of 29%, vis - vis 500% increases in natural gas prices, 300% increases in coal prices, 200% increases in NGLs Natural Gas liquids Saudi energy minister Prince Abdulaziz bin Salman told a forum in Moscow on Thursday.

The Organisation of Petroleum Exporting Countries and allies led by Russia, collectively known as OPEC, have done a remarkable job acting as so-called regulator of the oil market, he said.

Gas markets, coal markets, other sources of energy need a regulator. This situation is telling us that people need to copy and paste what OPEC has done and achieved? According to Prince Abdulaziz, asked by major consumers why OPEC would increase production to cool off rising oil prices, the Prince ordered the following: I keep telling people we are increasing production. He said OPEC would be adding 400,000 barrels per day of bpd in November and then in the following months again in the following months.

In its meeting earlier this month, OPEC stuck to its agreement to increase production by 400,000 bpd a month as it unwinds production cuts.

We want to make sure that we reduce the excess capacities that we have developed as a result of COVID, he said, adding that OPEC wanted to do it in a gradual, phased-in approach Prince Abdulaziz said: While OECD oil inventories were on track to normalize at the end of this year, 2022 was looking a bit of a challenging year OPEC figures show the oil market for a surplus of about 1.4 million bpd next year.