Saudi Arabian Oil Minister signals OPEC may increase oil supply
Saudi Arabian Oil Minister Ali al-Naimi signalled OPEC may increase the supply of oil to meet growing demand in China and India (Bloomberg, 25-Jan-2011). Mr al-Naimi stated worldwide oil demand may increase in 2011 by as much as 1.8 million barrels per day, equating to a 2% increase. He reiterated that the Organisation of Petroleum Exporting Countries’ (OPEC) policy is to meet any additional requirement for crude. Following the comments, oil fell to the lowest level in five weeks. Crude oil for Mar-2011 delivery dropped USD1.24 to USD87.87 per barrel on the New York Mercantile Exchange, the lowest settlement price since 16-Dec-2010. Brent crude oil for Mar-2011 settlement fell USD0.99 cents to USD96.61 a barrel on the London-based ICE Futures Europe exchange.