Brent oil trading at $123 after Saudi’s Aramco price comment

Brent oil futures open today’s trading session back near $123 a barrel as Saudi Arabian state owned Aramco’s chef executive said that he’s not comfortable with oil prices where they are today, but we guess there’s not much Saudi Arabia can do to help right now?

Latest Brent Oil Price

In London, Brent crude oil futures for June 2011 delivery was trading at $123.11, 06.20 GMT this morning on the ICE Futures Exchange.

Saudi Arabia and Oil Supply

Saudi Aramco chief executive Khalid al-Falih said on Tuesday that Saudi Arabia has enough spare crude oil capacity to meet world demand, as Brent oil prices extend a rise above $123 per barrel.

The comments come after it emerged that Saudi Arabian oil production actual fell in March 2011 by around 800,000 barrels per day to 8.2 million, from around 9 million barrels per day. Saudi official’s stated that the drop was planned.

“We are not comfortable with oil prices where they are today…I am concerned about the impact it could have on the global economy.” Falih told an industry gathering in Seoul.

High prices were not due to any tightness in supply in global markets, Falih said.

Falih’s comments are similar to those of Saudi Oil Minister Ali al-Naimi, who said last week that the Saudi Arabia had cut crude oil output in March as the market was oversupplied. But is the market really oversupplied?

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Brent oil trading at $123 after Saudi’s Aramco price comment