No Oil Problems Here, Says Saudi Arabia
Saudi Arabia, the top oil exporter in the Middle East wants to reassure everyone. They have recently explained that they are ready to supply Asia with more oil. Oil Minister Ali Al Naimi explained in his remarks that were carried by the state news agency that their spare output capacity allows them to counter any issues with supply or demand.
As the Oil Minister explained, they are ready to help South Korea, Asia and other countries with “volumes needed as it has huge spare capacity to meet any rise in global oil demand or a decline in supplies.” They did not offer any solid figures about their spare capacity or about exactly how much oil the kingdom has. But they did explain that they have raised their output to about nine million barrels per day to help to compensate from the shortfalls in Libya.
Taking Over the Shortfall
With the unrest in Libya, Saudi Arabia is stepping in to take over the shortfall. It has already sold approximately 2 million barrels to European buyers.
Oil prices have recently surged, with the highest prices so far that they’ve had in the last few weeks. Brent jumped $4 a barrel, creating a 32 month high.
Naimi explained that the oil prices were not actually driven by a lack of oil, but by speculation and fear about supply and demand due to the upheaval in the Middle East.