Saudi Says Lower Oil Price “Suitable” For Global Growth

Saudi Arabia is satisfied that oil prices have fallen to a level that does not hamper global economic growth, Saudi Oil Minister Ali al-Naimi said on Wednesday.

“The market has stabilised again and prices have come down to suitable levels for consumers and producing countries, and for the global economy and its growth,” Naimi told a meeting of Gulf Arab energy ministers in Riyadh.

OPEC’s biggest oil producer raised output to 10 million barrels a day earlier in the year to help compensate for a cut in exports from Iran. Iranian supplies have been by halved by Western sanctions but extra volumes from Saudi have reversed a sharp rally in prices in the spring.

Brent crude has fallen from a high for the year of $128 a barrel in March to $112.

Asked by reporters if the aim was to reduce prices to $100 a barrel, Naimi said: “We hope the price will moderate and we will work towards moderating the price.”

That would suggest that Riyadh may want to see prices fall further. Naimi identified $100 a barrel as a suitable price during a visit to Japan, a major buyer of Saudi crude, earlier in the year.