CAIRO: Ali Al-Naimi, the Saudi Minister of Petroleum and Mineral Resources, released a statement commenting on the prolonged period of high oil prices. “We are not happy about it. The Kingdom [of Saudi Arabia] is determined to see a lower price and is working toward that goal,” he said during his visit to Seoul. Saudi Arabia increased output to 10 million barrels per day in April, Al-Naimi told reporters. Output of 10 million bpd would be the highest since November, when Riyadh pumped more than it had for several decades. The minister also said other OPEC producers were raising output, and too, along with increased Saudi production, should ease the pinch. “The global inventories in Saudi Arabia and around the world are full,” he said. “Other OPEC members, such as Libya, Iraq and Angola, have also taken strides toward increasing output.” Al-Naimi recorded output in March at 9.9 million bpd, when he said Saudi Arabia was prepared to produce at its full capacity of 12.5 million bpd. He identified $100 a barrel as an ideal price for producers and consumers earlier this year. Brent traded above $120 a barrel yesterday and has risen about 13 percent this year as tightening US and European sanctions target exports from Iran. There are some analysts who believe the world is at ‘peak oil', meaning we will never increase oil extraction by significant numbers; certainly, not enough to meet growing needs.
