Saudi backs OPEC increase
Leading OPEC producer Saudi Arabia backs an increase in cartel output limits even though it is struggling to find buyers for more of its crude, Saudi Oil Minister Ali al-Naimi said on Saturday.
“Absolutely, yes,” Naimi said of Riyadh’s support for raising OPEC’s 28-million barrels a day formal output ceiling.
“Absolutely not,” was his assessment of whether or not he saw extra demand for OPEC crude on the world market. “I’ve offered up to 11 million (barrels a day) but we have had no response whatsoever.”
OPEC’s analysis, backed by industry experts, is that world crude supplies are ample. Refinery bottlenecks in consuming nations are the problem.
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So why are the big oil companies not investing and building more refineries? To keep the oil price high?