Saudi Arabia Boosts Oil Supply; Doubt Over Price Drop

Khelil, who is the president of the Organization of Petroleum Exporting Countries and oil minister for Algeria, said a Saudi increase was “illogical.” Asked whether prices would decline after the summit, Khelil and Venezuelan Oil Minister Rafael Ramirez both replied: “I don’t think so.”

John Hall, managing director of London-based consultants John Hall Associates, said Saudi Arabia would need to increase supply by at least 500,000 barrels a day, to push prices lower.
“My guess is you will see prices rise” as supply disruptions including attacks in Nigeria persist, Hall said in an interview.

Royal Dutch Shell Plc and Chevron Corp. have between them in the past week lost about 300,000 barrels a day of Nigerian production because of militant attacks.

Adjusted for inflation, this year’s crude oil prices are at their highest ever level, surpassing a previous peak in 1980 when Iranian production slumped following the 1979 revolution.

Bloomberg