Saudi Arabia is ready to boost oil deliveries

Saudi Arabia’s Oil Minister Ali al-Naimi said on May 12 that his country would make up for any shortfall that may result from the conflict in Ukraine. After pro-Russian eastern separatists held a referendum last weekend and voted to secede from Ukraine, many in the West worried that another round of annexation by Russia was imminent. Russia has thus far showed restraint, but Naimi sought to reassure the markets that a disruption from Russia would not endanger global supplies, as Saudi Arabia would step in. “We are willing to supply any shortage which may arise,” he said at a conference in Seoul.

Naimi also said that there is no reason to change OPEC’s current output quota of about 30 million barrels per day (bpd). Given current market conditions, Naimi said that OPEC is targeting $100 per barrel. “One-hundred dollars is a fair price for everybody — consumers, producers, oil companies,” he said. “It’s a fair price. It’s a good price.”