“Is the market balanced between supply and demand? Not yet,” he told reporters upon his arrival in the Austrian capital, but also admitted that crude inventories were coming down.
“Global oil demand in 2009 is significantly less than 2008,” he added.
Asked whether there will be another cut at the meeting, he replied: “We will tell you tomorrow (Sunday).”
Al-Naimi added that compliance was “very good” among OPEC nations following recent output cuts that were aimed at boosting weak oil prices.
The Organization of Petroleum Exporting Countries (OPEC), which pumps 40 percent of crude oil supplies, agreed late last year on cuts to reduce output by 4.2 million barrels per day.
“Compliance is very good. Now it’s over 80 percent. It can be better,” al-Naimi said.
“We like to see compliance as high as possible.”
Quizzed about the level of crude oil inventories in OECD (the Organization for Economic Cooperation) countries, he responded: “It’s coming down. And it will come down in due time.” The OECD includes 30 countries. OPEC’s official daily output quota currently stands at 24.84 million barrels after the last gathering in December in Oran,
Algeria.
Qatar’s energy minister also said yesterday OPEC countries must make sure that previous cuts in output are being adhered to before deciding further reductions.
“We should have full compliance and then we can talk in the future about what we should do,” Deputy Premier and Minister of Energy Abdullah bin Hamad Al-Attiyah told reporters.
The organization was scheduled to meet to discuss whether further cutbacks are necessary to prop up falling crude prices. But so far compliance with previous cuts was only around 80 percent, Al-Attiyah said.
“I’m not going to propose for any new cut before we’ve first checked compliance. Even if (compliance) is 80 percent, that means there are 800,000 barrels out,” the minister said.
In that case, making sure that compliance was 100 percent would effectively mean an additional cutback, he argued.
In terms of compliance, “eighty percent is good, but I’d like to see it at 100 percent. We cannot talk about a new cut and other things unless we have compliance,” the minister said.
Al-Attiyah said the organization had no mechanism to ensure that member countries were abiding by their commitments.
“I have no mechanism. Everyone should trust each other,” he said. “I’m not going to suggest any mechanism. We will encourage everyone to stick to their compliance.”
Venezuelan Energy Minister Rafael Ramirez had also called Friday for “100 percent” compliance among OPEC members.
Kuwaiti Oil Minister Sheikh Ahmad Abdullah Al-Sabah added: “We have to see compliance.”
