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FINANCIAL NEWS
Saudi expects demand for its oil to increase in 2013
02 Apr 2013
(MENAFN) Saudi Oil Minister, Ali Al Naimi, announced that external demand for Saudi oil is expected to grow during the coming 5 months, reported Gulf Daily News.
Al Naimi said that in November and December 2012, the Kingdom cut its oil production by nearly 700,000 barrels per day (bpd), which fueled an increase in crude prices from the start of December to February.
He added that in the fourth quarter, Saudi Aramco reduced output notably due to sluggish economic growth overseas and less seasonal demand for oil for power generation in the country.
However, in the first 2 months of 2013, the company maintained output steady at about 9.05-9.15 million bpd.
It is worth noting that as Europe is still going through the financial crisis and as the US is relying more and more on its own oil; oil exporters in the GCC are shifting to other markets, mainly in Asia that acquired over 3 times as much Saudi crude in 2011 as buyers in North America, and 5 times more than Europe.
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