In an interview with Reuters, Saudi Arabia’s OPEC Governor argued that the oil market could shift towards oversupply in the fourth quarter of the year amid rising inventories.
Key quotes (via Reuters)
- We want to be watchful not to overcorrect and cause a substantial inventory build.
- Kingdom’s oil output rise is not in any way to push oil to market, but rather a response to market needs.
- Oil demand to start dropping off towards year-end, says production will be adjusted “to mirror that”.
- Oil inventories, not prices, are “a leading signal for what we might have to do”.
- Kingdom’s spare oil capacity “will definitely not be tapped” until there is market demand for it.
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