Saudi Oil Minister Ali Naimi does not see any need for Opec to cut output at tomorrow’s Vienna meeting, adding he believes oil inventories will shrink as global demand rises, with the increase in consumption driven by emerging economies.

“There’s no need to cut now,” reuters quoted him as sayng.

“Demand is picking up, especially in Asia,” he added.

Naimi, one of the most influential ministers in Opec, also said he saw increased fuel use in Latin America and the Middle East, but an only limited upturn in consumption in the world’s leading energy consumer, the US.

However, he added that he saw Saudi Arabian demand rising at about 7% per annum.

He also told reporters that oil inventories have reached the equivalent of around 62 days of forward cover, but he believed they could shrink to 52 days.

Naimi said customers were asking for extra oil, but he would not supply all they asked until the market was back in balance.

(Upstream Online)