Saudi committed to remain a reliable oil supplier to India: Pradhan

Saudi Arabia's new Energy Minister Prince Abdulaziz bin Salman center and United Arab Emirates Energy Minister Suhail al-Mazrouei right walk through an energy exhibition in Abu Dhabi United Arab Emirates Monday Sept. 9 2019

Saudi Arabia's new Energy Minister Prince Abdulaziz bin Salman center and United Arab Emirates Energy Minister Suhail al-Mazrouei right walk through an energy exhibition in Abu Dhabi United Arab Emirates Monday Sept. 9 2019

He has held senior roles in the energy ministry for more than three decades and most recently was minister of state for energy affairs. USA production generated a record 12.65 million barrels per day (MBD), based on August data as new export pipelines projected in the coming months prompt U.S. energy officials to produce some 13.85 MBD by end of 2019.

"Clearly, the Kingdom wants higher oil prices".

"Had a healthy exchange on further deepening bilateral trade and investment in the energy sector", he said.

That came as a faltering global economy and a boom in United States shale oil threatened to create a global glut in supply.

"The pillars of our oil policy are pre-determined and will not change", he told Saudi broadcaster Al-Arabiya. Saudi Arabia's best option is to allow the adjustment process to play out. Al-Falih talked to the market a lot, frequently appearing on business TV channels and holding regular press briefings after OPEC meetings, a strategy that ran the risk of diminishing returns.

But there is a tension between lifting prices as high as possible to maximise short-term revenues and keeping them moderate to maximise medium-term and long-run earnings.

He added that the so-called OPEC+ alliance between OPEC and non-member countries including Russian Federation, a partnership he helped cement, was staying for the long term.

"To prevent a sell off, the kingdom will need to be clear that it is sticking with its Opec cuts", he said.

OPEC oil output in August rose for the first month this year as higher supply from Iraq and Nigeria outweighed restraint by Saudi Arabia and losses caused by USA sanctions on Iran.

It is the first time a member of the Saudi royal family is in charge of the energy ministry.

Prince Abdulaziz also alluded to the sense that Saudi Arabia is shouldering the burden of production cuts, while other nations - notably Nigeria and Iraq - are flouting the limitations.

The Associated Press reported in February that White House officials pushed a project to share nuclear power technology with Saudi Arabia despite the objections of ethics and national security officials, according to a congressional report citing whistleblowers within the U.S. administration.

The group has been "very conservative" with oil demand numbers, Barkindo said. As well as being responsible for oil production policy, Al-Falih was chairman of state oil company Aramco and led planning for its IPO. The government also separated the ministry of industry and mineral resources from the energy portfolio, removing Falih's oversight of industrial policy.

Some commentators have suggested the kingdom's top policymakers want an oil price of $70 per barrel or even $80 to help fund its ambitious transformation programme.

"We continue to expect OPEC will sacrifice market share in line with leadership commentary at its June meeting, which we believe will lead to Brent prices of around $60/bbl".

Producers are still over-complying with the supply-cutting deal, but this puts OPEC output further above the 2020 demand forecast.