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Iran, Saudi see balanced oil market

Riyadh, October 2, 2011

Global oil market supply and demand is balanced, Opec rivals Saudi Arabia and Iran said at the weekend after oil prices slumped on Friday on renewed global economic worries.

Leading exporter Saudi Arabia and its price-dove Gulf Opec allies raised production in June after failing to convince Iran and other price hawks to agree an official Opec increase to make up for a lack of Libyan oil.

Iran, along with Venezuela and Algeria, argued back then the global economic outlook was too uncertain to up production, rejecting Opec advisory panel advice that more oil would be needed in the months that followed.

The Organization of the Petroleum Exporting Countries has since cut its forecast in response to a gloomy economic outlook.

And, for now at least, Saudi Arabia and Iran, the two Opec members which are often at odds over production policy agree the market is balanced.

The market is 'currently characterised by a balance between supply and demand,' Saudi state news agency SPA quoted Saudi Oil Minister Ali al-Naimi as saying on Saturday.

'The kingdom is ready to play its positive role for the stability of the market.'     

Iran's Opec governor Mohammad Ali Khatibi told the semi-official Mehr news agency on Sunday that a slide in crude prices, with Brent down about $14/barrel since early August, had vindicated opponents of the Saudi-led production push in June.    
'Unlike the predictions of some Arab countries, demand has absolutely not increased,' Mehr quoted Khatibi as saying. - Reuters




Tags: Saudi | Iran | oil market |

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