Saudi Energy Minister Asks Non-OPEC Producers for Help Stabilizing Oil Market

Saudi energy minister Khalid al-Falih said on Wednesday that oil markets were at the end of a considerable downturn as fundamentals were improving and supply and demand were rebalancing.

He called on non-OPEC producers to help stabilize the market saying their role was as critical as the role of OPEC members.

“Market forces are clearly working after a testing period of sub-$30 oil prices… Oil demand is expanding at a healthy rate despite slower global growth,” he said.

He added that by freezing production or slightly reducing it, OPEC wanted to signal to the market that it wanted to lower inventories and encourage investment.

“I am happy to see more rigs coming back,” he said, adding that unconventional oil production was important for helping to meet global demand growth.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza