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- The Saudi Energy Minister: I hope that the slow growth of the world economy will not reduce the demand for oil
The Saudi Energy Minister: I hope that the slow growth of the world economy will not reduce the demand for oil
Saudi Arabia hopes that the global economic slowdown will not cause the fall of the current steady demand for oil. This was announced by Energy Minister Khalid al-Falih in an interview with a German newspaper, adding that oil prices near $ 50 is too low.
"Ultimately, market fundamentals, or supply and demand, are the main factor determining the price of oil, and at the moment we see a healthy demand for oil, - the Minister said -. However, there are economic headwinds in some important markets and we hope that it will not cause a slowdown in global demand. " Khalid al-Falih said that oil prices should be somewhere between $ 50 and $ 100 per barrel so the industry continue to increase investment.
"We're seeing supply reduction by about a million barrels of crude oil per day, - he said, referring to the situation in the US and Canada -. At the same time, demand has recovered, which means that supply and demand are now again more balanced, but it is even surplus stock in the market. It will take a long time to reduce these stocks. "
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