BY CONTINUING TO USE THIS SITE, YOU ARE AGREEING TO OUR USE OF COOKIES. REVIEW OUR
COOKIE NOTICE

Register with us today

and in less than 60 seconds continue your access to:Latest news headlinesAnalytical topics and featuresCommodities videos, podcast & blogsSample market prices & dataSpecial reportsSubscriber notes & daily commodity email alerts

Already have an account?

Log in to register

Forgot Password

Please Note: Platts Market Center subscribers can only reset passwords via the Platts Market Center

Enter your Email ID below and we will send you an email with your password.


  • Email Address* Please enter email address.

If you are a premium subscriber, we are unable to send you your password for security reasons. Please contact the Client Services team.

If you are a Platts Market Center subscriber, to reset your password go to the Platts Market Center to reset your password.

In this list
Oil

Tight spare capacity a concern as oil demand rises: Saudi energy minister

Agriculture | Grains | Energy | Thermal Coal | LNG | Natural Gas | Oil | Crude Oil | LPG | Refined Products | Petrochemicals | Shipping | Tankers

Market Movers Asia, Jun 24-28: Trump, Xi to meet at G20 summit; US to announce additional sanctions on Iran

Oil

Platts Rigs and Drilling Analytical Report (RADAR)

Commodities | Oil | Crude Oil

Middle East Executive Petroleum Conference (MEEPEC)

Oil | Crude Oil | Refined Products

La refinería de Curazao, cerca de quebrar por la falta de crudo de PDVSA

Tight spare capacity a concern as oil demand rises: Saudi energy minister

Highlights

Industry players, upstream and downstream markets, refineries, midstream transportation and financial reports

Supply and demand trends, government actions, exploration and technology

Daily futures summary

Weekly API statistics, and much more

Tokyo — Saudi Arabia's energy minister, Khalid al-Falih, said Monday that tight spare capacity in the oil sector was a concern at a time when the market was witnessing healthy demand.

Not registered?

Receive daily email alerts, subscriber notes & personalize your experience.

Register Now

"We are concerned about tight spare capacity nowadays," Falih told reporters in Tokyo. "We are watching investment levels very closely to make sure that we have a pipeline of project flows sufficient to meet the incremental demand that is very healthy," he added.

The International Energy Agency said in its oil market report in April that OECD oil stocks fell by a larger-than-normal 25.6 million barrels in February to within just 30 million barrels of their five-year average, the key metric to gage the success of OPEC-led output cuts.

As of February, OECD oil stocks have now fallen for six of the last seven months and have fallen sharply compared with their five-year average, the key metric being used by OPEC to measure the success of its output cuts.



"I think we will have to wait until June," Falih said. "At that time we will determine what a target is, what are metrics are."

The agreement, which commits the organization and 10 non-OPEC allies led by Russia to 1.8 million b/d in cuts, runs through the end of 2018, although several members have suggested the cuts could be prolonged as part of a more permanent market management deal. OPEC's next ministerial meeting is on June 22 in Vienna.

Falih said the aim was to ensure stability in the oil market.

"For sure we are not targeting the price. Our objective is always to bring stability, rebalancing ... to the oil market. We want to see a healthy industry. We want to see stability in the short term, mid-term and long term. And long term will require investment," he added.

Falih said that the oil industry is "better shaped" today than before the production cut deal was put in place, but he added: "We certainly do not feel we are where we need to be [for] complete market stability."

--Takeo Kumagai, takeo.kumagai@spglobal.com

--Edited by Jonathan Dart, newsdesk@spglobal.com