Saudi Arabia will not sit by and allow another oil supply glut: Al-Falih

Saudi Arabia Energy Minister Khalid Al-Falih on Wednesday said that it will not sit by and allow another supply glut to surface, but also does not want oil prices to rise to “unreasonable levels,” Reuters reported.

He added that a majority of the supply surplus, which had led to a sharp fall in oil prices starting mid-2014, has already been cleared.

Falih was speaking at the signing of a memorandum of understanding (MoU) between Saudi Aramco and Indian state refiners for a 1.2 million-barrel-per-day refinery to be built in India.

Earlier, the Saudi energy minister had expressed concern regarding future supply situation.

Investments in oil are not keeping pace with growing fuel demand, he said, speaking at the International Energy Forum in New Delhi.

However, the minister said he was reassured that there are two dozen oil producers working to maintain stability in the market.

When asked if he was pleased with the current oil market, Al-Falih said, “Yes, I am.”

Bloomberg reported on Tuesday that the Kingdom aims to boost oil prices to $80 percent barrel to support the valuation of Saudi Aramco before its initial public offering (IPO).