Tag Archives | Saudi Oil Minister

Brent May12.png

Saudi warns, again, that oil prices are “too high”

Brent oil prices are still within the triangle formed by movements over the past 4 years. As the chart shows, they tried to break-out on the upside last month, based on Iran supply worries. But since then, they have retreated again. Interestingly, there are now signs that fundamentals rather than sentiment are starting to drive […]

Continue Reading
WTI v natgas Jan12.png

Saudi comments increase oil market uncertainty

The International Energy Agency (IEA) confirmed the blog’s worst fears this week, with its announcement that crude oil demand actually fell by 300kbd in Q4. Not only is this “quite rare” as the IEA noted, but they went on to warn: “We’re flagging that there are clearly downside risks to the global economy and to […]

Continue Reading
Saudi oil Apr11.png

Oil markets prepare for post-QE2 world

The decision by S&P, the ratings agency, to put the USA’s AAA debt rating on review is a potential game-changer for US economic policy. It means that policymakers can no longer pretend the $5trn they have spent over the past 2 years on stimulus measures somehow “doesn’t count” in terms of needing to be repaid. […]

Continue Reading
SHIBOR Jan11.png

China tightens lending: Saudi may pump more oil

Recent days have seen some signs that the tectonic plates under current chemical and polymer markets may be starting to shift. The most important has been the rapid rise in inter-bank lending rates in Shanghai. As the chart shows from Petromatrix, these have begun to rocket. A year ago, the rate at which banks could […]

Continue Reading
OPECright.jpg

OPEC calls oil prices “beautiful”

OPEC’s meeting wrapped up quickly yesterday, with Saudi oil minister Ali al-Naimi once again saying oil prices today were “beautiful“. This highlights sentiment’s ability to take prices in the opposite direction to fundamentals. For certainly, on fundamentals, OPEC should have had a difficult session: • Quota compliance is now down at c50%, with Bloomberg estimating […]

Continue Reading
Oil stocks Dec09.JPG

Saudi says oil at $70 – $80/bbl is a “perfect price”

OPEC’s Angola meeting lasted just 70 minutes yesterday. Before the session, Saudi Oil Minister al-Naimi noted that prices were at their target level of $70-$80/bbl, and called this “a perfect price”. However, the underlying supply/demand balance remains fragile. As the chart from Nomura shows, current OECD oil/product inventories are well above normal levels. Whilst today’s […]

Continue Reading
Naimi right.jpg

Saudi confirms $75/bbl oil price target

Back in December, the blog analysed statements by King Abdullah, and concluded that Saudi Arabia had a ‘target range’ for oil prices of $75 – 100/bbl. Yesterday, this analysis was confirmed by Saudi Oil Minister, Ali Naimi, who said the world economy could now “weather oil prices at $75 – 80/bbl”. The blog fears that […]

Continue Reading

OPEC targets stocks, not prices

There is some interesting material on the OPEC website, following this week’s Summit, which clarifies their current strategy. The key points are: • OPEC is currently targeting inventories, not prices. Their policy is to keep OECD crude stocks within the 5 year average. OPEC says its previous production cutbacks ‘minimised the excessive overhangs that existed […]

Continue Reading