Saudi says it won’t flood oil market before Opec meet

Saudi Arabia, the world’s biggest oil exporter, won’t boost output to capacity and flood the market, the kingdom’s Energy Minister Khalid al-Falih said as Opec members plan to meet next month to discuss ways to stabilise crude prices.Saudi Arabia isn’t concerned about global demand in spite of a drop in prices and a slower economy, al-Falih said in an interview with Al-Arabiya television. The country is able to pump as much as 12.5mn bpd of oil, he said in comments broadcast during an official visit to buyers in Asia, its biggest market, including China.“The market is now saturated with stored crude at beyond usual levels and we don’t see in the near future a need for the kingdom to reach its maximum capacity,” al-Falih said. Demand in China is “very healthy” and consumption in India is “very good,” he said. Saudi domestic use is rising due to two new refineries in Yanbu and Jubail, which have raised consumption by a combined 800,000 bpd, al-Falih said.Saudi Arabia is producing near record levels as it tries to preserve market share in the face of a worldwide glut. Increased oil supply, including from US shale drillers, triggered a drop in prices of more than 50% since their 2014 peak. Saudi Arabia plans to hold informal talks on stabilising prices with other members of the Organization of Petroleum Exporting Countries in Algeria next month.Opec’s decision to hold talks on prices during an industry conference in Algiers has fed speculation that the group might revive an effort with non-members such as Russia to cap output. Venezuela, one of the group’s members hit hardest by cheaper crude, has called for collective action to support prices. A previous attempt to freeze production collapsed in April amid tensions between Saudi Arabia and Iran.The kingdom pumped 10.43mn bpd in July compared with a record 10.57mn in the same month of 2015, data compiled by Bloomberg show.“Saudi Arabia will remain flexible in its petroleum policy,” al-Falih said. “We will meet demand if it rises as was the case for this year and last year.”