The imbalance in the oil market is not down to Saudi Arabia, according to the national oil company’s CEO, Khalid Al Falih.
In comments reported by Reuters from a conference in the Kingdom’s capital, Riyadh, last week, the Al Falih said it is a fair oil price that would rebalance supply and demand.
“The math will tell you that our exports…are gradually declining so the reason for the imbalance in the market absolutely has nothing to do with Saudi Arabia,” he commented
“I would not venture to guess where the [fair oil] price will be but it will be the price that ultimately balances supply and demand, and I don’t think that anybody, no single person can dictate what that price is. I will be foolish if I did that.”
Saudi Aramco’s cash reserves means the company is better placed then most organisations to survive a sustained period of low oil prices.
However, that hasn’t stopped reports that the energy giant has asked service companies to charge less for their services, while it could also postpone projects because of the falling price of crude.
