Saudi Arabia keeps output below 8 mm bpd

Saudi Arabia is pumping below 8 mm bpd and is unlikely to increase output as world supply continues to outpace demand, Saudi Aramco's chief executive Khalid Falih said.
The kingdom is carrying the bulk of OPEC's 4.2 mm bpd of production cuts agreed since last September to counter the effects of the global economic downturn on energy consumption and crude prices. A survey showed the kingdom pumping 7.95 mm bpd in April.

The Saudi Aramco chief said spare production capacity will reach 4 mm bpd in the next few weeks as the country is on the verge of reaching its goal of increasing total oil production capacity to 12 mm bpd. He added that oil markets were well supplied and that supply looked set to outpace demand for the next several years.
However, the Saudi Aramco chief said producers needed to maintain a cushion of spare capacity. Oil prices are down nearly $ 100 from last July's peaks due to the effects of the global economic downturn.

Falih said low oil prices were good for the economy but threaten investment in future production capacity. He said Saudi Arabia's investment plans would not be adjusted in the foreseeable future.
Falih was speaking at the Saudi Aramco Management Development seminar dinner, held at the National Portrait Gallery, in Washington, DC.