Saudi Arabia's Oil Minister Naimi Says Demand for Oil Is `Very Healthy'
Saudi Arabian Oil Minister Ali al- Naimi said oil demand is “very healthy.” He spoke to reporters this morning at the Vienna headquarters of the Organization of Petroleum Exporting Countries shortly before ministers began their meeting. Al-Naimi made the following comments:
On the prospect of maintaining current OPEC quotas:
“Has anybody said anything about a change in the scene? Nobody has said anything.”
On market fundamentals:
Current prices are “good,” and Asian demand is “good.”
“The market is well supplied. It is an ideal situation we are in now. Nobody is complaining. Consumers are happy, producers are happy. Companies are investing.”
Demand is “healthy. Very healthy.”
On the economy:
Asked about the possibility that the Federal Reserve may embark on another round of bond purchases, he said: “Anything that stimulates growth is good.”
“I hope we don’t have a double dip. Everybody is working very hard to avoid an economic slowdown. People’s prosperity is very important.”
On low compliance with OPEC production quotas:
“Compliance is OK. The market is happy with the supply and demand.”
On oil prices at $84 a barrel now:
“The market is happy with what it is today.”
On the impact of the weak U.S. dollar:
“Currencies change every day. How many times does the dollar go down, and how many times does it go up. So why worry?”
On Saudi Arabia’s current production:
The country is producing 8.1 million barrels a day, he said.
On Iraq and Iran’s new proven reserve estimates:
“Every country is free to say what their reserves are. So whatever they say, that’s their reserves.”
On the prospect of an OPEC meeting this December:
“That remains to be seen. It is not on the agenda.”
To contact the reporter on this story: Ayesha Daya in Vienna at adaya1@bloomberg.net
To contact the editor responsible for this story: Stephen Voss at sev@bloomberg.net
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