Saudi’s Naimi sees no change in OPEC output

Saudi Arabian Oil Minister Ali al-Naimi said $75 a barrel was a fair price for oil and he saw no need for OPEC to change production ahead of the group’s next meeting in December, according to a transcript of an interview with US television.

In an interview with the Nightly Business Report on PBS to be aired on Friday, Naimi said producers needed an oil price that would allow supplies to be developed to meet demand. “We believe that around $75 (a barrel) is a fair price for both producer and consumer,” Naimi said. “At $60 and $70 (a barrel), you see a bigger movement in investment, you see more supply of energy.”

When asked if he saw any factors in energy markets that could prompt OPEC to change its production policy ahead of its next meeting in December, Naimi said: “Right now, I don’t believe so. I think we will be as we are today.” He added he was not worried about rising volumes of Russian oil exports, even as OPEC was restraining production.

Naimi said he did not want oil prices to return to $140 a barrel but added: “Anything is possible. We will do our best to avoid that.” Naimi said signs were emerging that global oil demand is rising again, especially in Asia.

“Based on what we have seen in the recovery of price and how it is reacting to economic growth, I believe we are on the road to economic recovery,” he said. “Today there is not growth in the US market and maybe it is decelerating rather than accelerating for now.” But he said other markets were experiencing demand growth, citing China, India and Middle Eastern nations.

The Saudi oil minister said governments should use legislation to limit oil market speculation, blamed by some for last year’s run up in oil prices to near $150 a barrel. “I believe the subject today of trying to manage this speculation is being discussed very loudly and thoroughly in many organizations in many government institutions,” Naimi said.

The US government is seeking to limit speculation in oil and commodity training to help prevent large price swings, after excessive speculation has been blamed by some for record high prices last year. New regulations on position limits in futures markets could be in put in place by late October or November.

Naimi blamed the financial crisis that has hit the world economy over the past year on “uncontrolled greed.”

Tags:  Saudi Arabia. OPEC