Oil price rises despite Saudi supply promise

Oil prices continue to rise this year even though Saudi Arabia’s oil minister claimed there were no supply issues. Mr al-Naimi even said his country could boost supply by another […]

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By Tom Gibson

Oil prices continue to rise this year even though Saudi Arabia’s oil minister claimed there were no supply issues. Mr al-Naimi even said his country could boost supply by another quarter if needed.

Global prices briefly fell following the oil minister’s comments: “My only mission is to convey to you that there is no supply shortage in the market… We are ready and willing to put more oil on the market.”

However, prices rose again and have seen a 15% rise in 2012 so far. Analysts claim the rises are due to continued global unrest, predominantly in the Middle East.

Saudi Arabia is the world’s biggest producer of crude oil, currently delivering 9.9 million barrels per day. The minister said it could boost output to 12.5 million barrels per day if needed.