Demand on Saudi Arabia's production of crude oil is rising in most parts of the world, as the country works on restoring balance between supply and demand to support oil prices, said Saudi Minister of Energy, Industry and Mineral Resources.
Saudi oil production has gone up to 10.67 million barrel last month to meet the increase in seasonal demand during the summer, as well as meeting the higher demands of customers, minister Khaled bin Abdulaziz Al-Falih said in an interview published by the Saudi Press Agency (SPA) on Saturday.
He added that "Despite the bearish sentiment engulfing the market, we still see strong demand for our crude in most parts of the world, especially as supply outside OPEC has been declining fast, supply outages increasing, and global demand still showing signs of strength."
In response to a question if Saudi is drawing down stocks due to a rise of supply above production by 10.75 million barrel last month, the minister noted that there has been a modest stock drawdown last month, which is expected during this time of the year.
However, as the rebalancing process consolidates, we expect de-stocking to accelerate in all parts of the world providing support to oil prices.
As for domestic consumption, Al-Falih said that it usually rises in summer due to increasing use of electricity for the purpose of cooling.
This summer's increase is lower than previous summers, in the light of the efficiency program executed by Saudi in the last three years.
Meanwhile, He said the country is following market rebalancing measures to face the dropping oil prices in the past few weeks, although the process of clearing crude and products inventories will take time.
"We are, in Saudi Arabia, watching the market closely, and if there is a need to take any action to help the market rebalance, then we would, of course in cooperation with OPEC and major non-OPEC exporters," Al-Falih said.
He noted that the International Energy Forum (IEF) will hold a ministerial meeting in Algeria next month. The event is an opportunity for OPEC and major exporting non-OPEC ministers to meet and discuss the market situation, including any possible action that may be required to stabilize prices.