(MENAFN- Saudi Press Agency) Eng. Ali bin Ibrahim Al-Naimi, Minister of Petroleum and Mineral Resources, confirmed that the stability of oil markets remains the Kingdom's main pillar of its oil policy.
In a paper titled 'Role of the Kingdom of Saudi Arabia as an energy exporter in the 21st century' before the German Arab Friendship Association held in Berlin today, Al-Naimi said despite that supply and demand are the main aspects determining the oil price, other factors include speculations, understanding of future developments related to oil, and the use of oil as an asset.
He said when oil prices soar to high skies as was the case in the recent years, the international oil sector tend to increase investments, noting that this led to huge oil production costive levels, citing deep water fields, north pole fields, heavy raw fields in Canada and Venezuela and shale oil fields in the U.S.
This led to an increase in supplies and if the speculation factor is taken into consideration, you will face decreasing prices, he said stating that this the mechanism controlling the oil prices.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.