Saudi says oil fundamentals sound

The world’s top crude exporter Saudi Arabia on Monday underlined what it called the “good” fundamentals of supply and demand, but also expressed concern about the oil market’s stability

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Meeting in the kingdom’s commercial capital Jeddah, the Supreme Council for Petroleum and Mineral Affairs noted “the good state of the fundamentals of supply and demand, and commercial reserves,” the official SPA news agency reported.

“The production capacity of OPEC is enough to meet current and future global demand,” the council reported of the 12-nation Organisation of the Petroleum Exporting Countries.

However, it also stressed “the kingdom’s concern that the equilibrium and stability of the world market be maintained, as well as the reliability of supplies, in the interests of producers, consumers, and global economic growth.”

After OPEC decided to leave output unchanged at a Vienna meeting on June 8, Saudi Oil Minister Ali Naimi said it was “one of the worst meetings” ever staged by OPEC because member nations were divided.

The decision sent crude prices shooting higher on global markets and exposed deep divisions in the cartel amid calls for a hike in quotas.

On Monday, New York oil prices fell, while London Brent steadied amid easing supply worries and lingering fears of a financial default by debt-ridden Greece which could hit demand for energy.

New York’s main contract, West Texas Intermediate for delivery in August, dropped 99 cents to $90.17 a barrel.

Brent North Sea crude for August dipped one cent to $105.11 in London afternoon trading as the benchmark contract continued to win support from a shortage of high-quality oil in Europe, traders said.

SPA reported that the Jeddah meeting, presided over by King Abdullah, also approved a five-year plan for state company Saudi Aramco for the years 2012 to 2016.