Saudi Energy Minister: We’ll Have to See Demand on Oil Before Offering Supply

Saudi Energy Minister: We’ll Have to See Demand on Oil Before Offering Supply

Saudi Energy Minister Prince Abdulaziz bin Salman and Russian Deputy Prime Minister Alexander Novak at a session during Russia's St. Petersburg Economic Forum on Thursday, June 3, 2021. (Reuters)

It would be premature to talk about potential overheating in the global oil market before seeing higher demand, Russia's RIA news agency quoted Saudi Energy Minister Prince Abdulaziz bin Salman as saying on Thursday.

"There will always be a good amount of supply to meet demand, but we'll have to see demand before you see supply,“ he said when asked about the overheating risk at the St. Petersburg economic forum in Russia.

Russian Deputy Prime Minister Alexander Novak, for his part, said on Thursday it was premature to talk about output decisions due to be made by the so-called OPEC+ group of oil producers in August.

Novak said the group would look at seasonal demand growth and consider the potential return of Iranian oil supplies to the market.

Current oil prices reflect the balance between supply and demand and are unlikely to rise further in the short term, he added. "The current oil price is good enough for Russia,“ he further noted.

In related news, top oil exporter Saudi Arabia has raised the July official selling prices