Shale oil alone incapable of supplying market demand: Al-Falih

Shale oil alone will not be capable of meeting the growing market demand, media reports said on Sunday, citing Saudi Energy Minister Khalid Al-Falih.

“The dynamics of US shale oil production is spread across so many operators that it is a challenge to engage and predict, but it is a reality,” Al-Falih said during his speech at the Atlantic Council Global Energy Forum in Abu Dhabi.

“Shale oil producers want Organization of Petroleum Exporting Countries (OPEC) to do all the work so that they can enjoy the benefits; that’s life,” he further added.

“Inventories remain key matrix for OPEC to ensure balanced market. We don’t expect shale oil prices to depress in 2019,” Al-Falih said.

Meanwhile, Al-Falih said that Saudi Arabia will maintain its additional oil capacity to help the global market stabilize.

“Oil demand is still strong. We need to narrow range of volatility in oil prices,” he added.

OPEC output dropped 600,000 barrels per day month-on-month in December.