Iran, S. Arabia see oil market balanced

Global oil market supply and demand is balanced, OPEC rivals Iran and Saudi Arabia said at the weekend after oil prices slumped on Friday on renewed global economic worries.Saudi Arabia believed that the cartel should increase production to make up for a lack of Libyan oil. Iran, along with Venezuela and Algeria, argued back then the global economic outlook was too uncertain to up production. The Organization of Petroleum Exporting Countries has since cut its forecast in response to a gloomy economic outlook. And, for now at least, Iran and Saudi Arabia, the two OPEC members which are often at odds over production policy, agree the market is balanced. Iran's OPEC Governor Mohammad Ali Khatibi, whose country holds presidency over the world oil cartel, said on Saturday that OPEC members are narrowing down their differences over production ceiling, given the deteriorating economic conditions in the advanced countries. We do not accept that a gap exists in the OPEC since different views have always existed in the OPEC," Khatibi told FNA, dismissing media reports on the widening of rifts among the OPEC members in their latest meeting. Western media alleged that during the last OPEC meeting certain members like Saudi Arabia and Kuwait demanded an increase in the quota of the world oil cartel. He said that during that meeting, certain members were optimistic about the future of the world economy and wanted a hike in the production ceiling due to a forecasted increase in demand, but a majority of others held an opposite view. "But Saudi and Kuwaiti oil ministers never said that they did not accept or would act in opposition to the OPEC decision," the Iranian governor reiterated. Khatibi further stated now that the prospects of the US and western economies have become a source of concern for all parties, "I don't imagine that any difference exists in the members' views about the global economy and all parties are coming to the conclusion that the world economy, specially the advanced countries, are faced with serious problems". In response Saudi Oil Minister Ali Al Nuaimi said on Saturday that the market is "currently characterized by a balance between supply and demand. "The kingdom is ready to play its positive role for the stability of the market." Also yesterday, Iran's Khatibi said that a slide in crude prices, with Brent down about $14 a barrel (Dh51.38) since early August, had vindicated opponents of the Saudi-led production push in June. "Unlike the predictions of some Arab countries, demand has absolutely not increased," Khatibi said. "In the current situation, there is a relative balance in the global market between oil supply and demand ... there is no need to increase OPEC's production ceiling."