The Fuse

Saudi Energy Minister Khalid Al-Falih: Oil Market is Already Rebalanced

by Leslie Hayward | June 02, 2016

In his first comments to press ahead of the June 2016 OPEC meeting, Saudi Energy Minister Khalid Al-Falih commented on Saudi Arabia’s strategy for the oil market. Falih stated that Saudi Arabia also considers the interests of the global economy and non-OPEC producers, that the market is already rebalanced, and expressed concern over the global underinvestment risk.

  • “We will start to see a more rapid pace of stock drawdowns in the months to come, and prices will respond accordingly to this rebalancing.”
  • “The market is doing quite well by itself and we will be very gentle in our approach so we do not shock the market. Our concern is for the long-term stability of the market.”
  • “We don’t want oil shocks in any way.”
  • “In the long term, we want to encourage investment.”
  • “There is no one person that can determine the equilibrium price.”
  • “We hope … for investment but not too much investment that brings to oversupply.”
  • “I wouldn’t call it a market share strategy.”
  • “This is part of the role of OPEC at times, to let the market do what it has to do.”
  • “The market is doing the work for us. We just make sure we stay alert and work collaboratively in OPEC.”
  • “Saudi Arabia has always been responsive to the needs of the market. Saudi Arabia has always been resilient. We’ve always been able to withstand long periods lower production, lower prices, higher prices.”
  • “We are going to be responsible, but also we’re going to be responsive. If there is for any reason a shortage in the market and we’re called upon to meet demand, we will do what we have to do. I don’t call that flooding. We’re just going to supply the market.”
topics: Khalid al-Falih, Oil Markets, Oil Prices, OPEC, Underinvestment, Video, Vienna