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Tue 18 Sep 2012 04:15 PM

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Saudi acting to lower oil prices - Gulf source

Majority of OPEC producers want oil prices around US$100; no shortage of oil supply

Saudi acting to lower oil prices - Gulf source

Saudi Arabia is acting to lower oil prices, a senior Gulf source said on Tuesday, adding that the majority of OPEC producers wanted oil prices around US$100 per barrel.

The Gulf source told reporters the oil market was well balanced with no shortage of oil supply.

Saudi Arabia was producing around 10m bpd of crude and other members of the Organisation of the Petroleum Exporting Countries would be increasing output over the next few months.

"We would like to see the price coming down and we are working to bring it down," said the Gulf source.

"The price now, we believe is high, and it's not supported by fundamentals at all. It's just speculation and geopolitics."

"The majority of OPEC countries prefer around US$100, including Saudi Arabia," he said, adding that US$100 per barrel was "right now the ideal price for the majority of OPEC countries... the majority is all except one or two."

"We think the oil market is well balanced," the Gulf source added.

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Jon 8 years ago

Given a lot of countries are starting to develop shale oil and gas, there's a fair chance the need for Middle Eastern oil will be greatly reduced in the next 10-15 years. I hope this "known unknown" has been factored into the budgets...