Saudi for 500,000 bpd Opec hike at Iran meet

‘‘Saudi Arabia is of the opinion that Opec’s production ceiling should be adjusted upwards by 500,000 bpd during the forthcoming ministerial meeting,’’ Naimi said. Naimi said that high oil prices, now at over $54 a barrel for US crude, were not justified by supply and demand fundamentals.

‘‘The sustained strength in crude oil prices is not supported by current oil fundamentals as both inventories and forward demand cover are within historic ranges, while market price structure is in contango,’’ Naimi said.

‘‘Projections show an increase in demand in the latter part of the year which would require additional crude to satisfy,’’ he said.

‘‘To adequately fulfill this year’s additional demand, Saudi Arabian output shall be increased from current levels at a later time this year. Saudi Arabia’s current capacity of 11 million bpd can and will be made available to meet market requirements,’’ Naimi said.