(MENAFN- Khaleej Times) The global oil market is well balanced and top exporter Saudi Arabia ready to supply whatever volume of crude is needed to meet demand, Saudi Oil Minister Ali Al Naimi said on Thursday.
Saudi Arabia produced record high volumes of crude in August as it boosted output for the second time in two years to cushion the global oil market from supply disruptions.
Naimi's comments come after producer group Opec this week sought to reassure consumers there is sufficient supply to cover a plunge in Libya's output.
"For the record, oil market fundamentals are good. The market is well balanced," Naimi said at an industry event. "I repeat the message that Saudi Arabia is willing and capable for meeting any demand."
Despite rising Saudi output, benchmark Brent crude prices spiked above $117 a barrel in late August on the virtual shutdown of Libyan oil output and the prospect of US military action against Syria.
Speculation about international political events is driving oil prices rather than any shortage in supply, Naimi said on Thursday.
"Our (Opec) production last month was almost the same as a month before, only 100,000 barrels a day shortage. There is no effect whatsoever... we won't see a crisis," said Abdullah Al Badri, the secretary-general of the Organisation of the Petroleum Exporting Countries.
Saudi Arabia pumped a record 10.19 million barrels per day in August, an industry source told Reuters. Rising supply from Saudi helped offset losses from other Opec members. Opec output in August fell around 124,000 bpd on the month to 30.23 million bpd, but the group said in its monthly report this week that the market was well supplied.
The US Energy Department expressed similar sentiments on supply, but noted that unplanned outages from Opec members had reached 2.1 million bpd in August, the highest level recorded since it started tracking outages in January 2009.
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