Saudi Arabia is moving the bulk of OPEC’s 4.2 million bpd of output reductions agreed since September 2008 to counter the effects of the worldwide economic downturn on energy consumption and crude prices. A survey indicated that Saudi Arabia produced 7.95 million bpd in April 2009.
Saudi Aramco chief executive Khalid Falih said that supply to oil markets was well and that supply looked to set outpace demand for the next many years.
Falih said producers required to maintain a cushion of spare capacity.
Oil prices are down around $100 from July 2008’s peaks because of the effects of the worldwide economic downturn.
Falih said low oil prices were good for the economy but warn spending in future production capacity. Falih said Saudi Arabia’s spending plans would not be adjusted in the foreseeable future.
