Saudi oil minister plays down global slowdown fears
Fundamentals of oil demand are strong, Al Falih says
Abu Dhabi: Saudi Arabia’s energy minister has played down concerns of any economic slowdown globally due to trade tensions between the United States and China, saying the issue would not impact oil markets.
“I think overall global economy remains strong enough for me not to be too concerned but we are watchful of course. If a slowdown happens, it is going to be mild, it is going to be shallow and it is going to be short,” said Khalid Al Falih while speaking to reporters on the sidelines of World Future Energy Summit that kicked off in Abu Dhabi on Monday.
He also said the fundamentals of oil demand are sufficiently strong and there will not be any impact on oil markets.
“Certainly on the supply side we are vigilant to take appropriate response if there is an impact on demand but, if there is, I think it is going to be very moderate.”
Al Falih was responding to a question on the current trade tensions between the US and China, and what impact this could have on oil demand.
Opec (Organisation of the Petroleum Exporting Countries) and its allies are currently cutting production by 1.2 million barrels per day to rebalance oil markets.
The deal, which commenced on January 1, will expire after six months.