IEF to Discuss Stabilizing Oil Market

IEF to Discuss Stabilizing Oil Market IEF to Discuss Stabilizing Oil Market

Saudi Arabia promises to work with OPEC and non-OPEC members to help stabilize oil markets, it said  a month ahead of an informal meeting of major producing countries in Algeria.

"We are going to have a ministerial meeting of IEF [International Energy Forum] in Algeria next month, and there is an opportunity for OPEC and major exporting non-OPEC ministers to meet and discuss the market situation, including any possible action that may be required to stabilize the market," Saudi Energy Minister Khalid al-Falih said in a statement.

"Members of the Organization of Petroleum Exporting Countries will meet on the sidelines of IEF, which groups producers and consumers, in Algeria from Sept. 26-28," Qatar's Energy Ministry said on Monday, CNBC reported.

The statement, sent by Saudi Energy Ministry, came in the form of a question-and-answer session with the state news agency SPA.

Oil prices extended earlier gains after the remarks. Brent crude was up more than 3% at $45.50 a barrel.

Saudi Arabia, OPEC's largest oil producer, pledged during the last OPEC meeting in June that the kingdom would not flood the market with oil.

The statement also said a July spike in Saudi oil output to a record 10.67 million barrels per day was due to summer demand and requests from customers.

The statement indicates Riyadh is worried that oil prices could be heading back towards $40 per barrel or lower due to fears of oversupply. Prices in recent days were supported by renewed calls by some OPEC members to freeze production, a demand that non-OPEC oil-producing giant Russia was quick to dismiss.

Some OPEC officials had said a revival of talks on a global oil production freeze could be discussed informally among OPEC and non-OPEC countries in Algeria, if oil prices weakened.