Saudi Aramco sees oil markets rebalancing as inventories dip

Demand for crude oil continues to rise while inventories are returning to the levels of the past five years, Bloomberg reported, quoting Saudi Aramco chief executive officer Amin Nasser.

“This is helping prices improve,” he said.

“The balance between supply and demand is very good,” said Nasser. “What we are seeing today is that prices are in continuous improvement.”

The Organization of Petroleum Exporting Countries (OPEC) and other major non-member producers are scheduled to meet in Vienna this week to assess the market and possibly decide on the output cap deal that expires March 2018.

Meanwhile, the United Arab Emirates energy minister Suhail Al-Mazrouei told reporters in Abu Dhabi that he is optimistic the producers will extend their deal on production cap when they meet on Nov. 30, the report said.

OPEC and non-member producers, including Russia, agreed in December last year to cut supply by a combined 1.8 million barrels per day for a period of six months. The deal was later extended by another nine months until March next year.