Saudis` Falih reassures IEA`s Birol of commitment to oil market stability

Saudi Arabia`s energy minister Khalid al-Falih said Thursday that he had held talks with the International Energy Agency`s Executive Director Fatih Birol and reassured on commitment to the stability of global oil markets amid soaring oil prices.

“I also talked to the executive director of IEA to reassure him of our commitment to the stability of oil markets and the global economy,” Falih said in a tweet. “To coordinate global action to ease oil market anxiety, I telephoned a number of my ministerial counterparts today [Thursday]. Energy ministers contacted recently include those from the UAE, the USA, Russia, India and [South] Korea.”

Following the call with his UAE counterpart Suhail al-Mazrouei, the two energy ministers said Thursday that the oil market remained well-supplied with the recent price rise driven by geopolitics, not fundamentals.

The ministers maintained “their commitment to security of supply” and said they would continue to monitor market conditions, the Saudi energy ministry said in a joint statement.

July ICE Brent crude futures traded at $80.50/b intraday Thursday, marking the first time the prompt contract crossed $80/b since November 2014, but fell in the afternoon to close 2 cents higher at $79.30/b.

The IEA — whose mandate is to safeguard global energy security — warned Wednesday of a potential supply shortfall from Iran and Venezuela could present a “major challenge” for oil producers in fending off sharp price rises and filling the gap, and reiterated its readiness to act if necessary to ensure a well-supplied market.

This article provided by NewsEdge.