Saudi Arabia would increase its oil output to cover any potential shortage brought on by the crisis in Ukraine, the country’s oil minister has said.
Speaking at a press conference in Seoul on Monday Minister Ali al-Naimi said both his country and the Organization of the Petroleum Exporting Countries (OPEC) would meet any additional demand for oil potentially caused by rising tensions between Russia and the West.
Acording to industry sources, Saudi Arabia produced 9.66million barrels of oil per day (bpd) of crude in April (up from 9.566million bpd in March), out of which it supplied 9.650 million bpd to the market.
But the top global oil exporter could increase its output to 12.5million bpd if needed, Naimi said.
“We are willing to supply any shortage which may arise,” he added.
In the past two years Saudi Arabia has already addressed supply disruptions from Libya, Nigeria, Iraq and South Sudan with increased exports.
Russia’s annexation of Ukraine’s Crimean peninsula and violence in eastern Ukraine have keeping benchmark Brent futures up high, near $108 a barrel, after hitting $112.39 on March 3, the highest this year.
The minister also said OPEC should maintain its current output cap of 30million bpd when it comes up for review at the producer group’s next meeting, on June 11.
“Supply is highly sufficient, demand is great and the market is fairly stable,” Naimi said.
“There is no reason for a change. Absolutely no reason.”
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