Demand for Saudi oil going down

Saudi Arabian crude output has gone down over the last couple of months. Despite the wildly fluctuating oil prices, owing mainly to the minute to minute changes in the regional geo-political environment, markets are starting to appear balanced.

In April 2006, Saudi Arabia was required to produce only 9.1 million bpd as compared to almost 9.5 million bpd during Q106. With lower customer demand, the Saudi output, as per Opec estimates, fell still further to 9.05 million bpd in May. Opec officials are saying customers were now asking less crude volumes.

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