“Supply and demand are almost equal”- Khalid al-Falih

Global oil markets are improving as supply and demand come back to parity said Saudi Arabian Oil Minister Khalid al-Falih. The global glut that sent oil prices tumbling at the end of 2014 is over now, according to Falih.

“We are out of it,” he said in his first newspaper interview since receiving his appointment to head the oil ministry last month. “The oversupply has disappeared. We just have to carry the overhang of inventory for a while until the system works it out.”

“The question now is how fast you will work off the global inventory overhang,” said the oil minister. “That will remain to put a cap on the rate at which oil prices recover. We just have to wait for the second half of the year and next year to see how that works out.”

In an interview with Saudi Arabia’s state-owned Al Arabiya news outlet, Falih said “We see that the market has returned into balance. Supply and demand are almost equal. The markets have started to improve in response to this balance.”

To watch Al Arabiya’s coverage of al-Falih’s comments, click here to watch the video with subtitles.

International crude oil benchmark Brent was up 1.5% at 2:30 EST today, moving above $50 per barrel after closing lower yesterday. WTI crude oil was also up 1.4% today, sitting just below $50 per barrel at $49.82. Crude oil prices have recovered substantially since January, when both grades fell below $30 per barrel amid a global glut.


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