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Latest News

Citi says oil markets need Saudi action, not words

Libyan oil supply disruption has not warranted the latest oil price rally which had a big risk premium in it-says official.

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February 24, 2011 2:45 by



Oil markets need to see real action from Saudi Arabia on oil output increases rather than words to cool down rallying prices, Citi said on Thursday.

Citi’s analyst Mark Fletcher said he believed Libyan oil supply disruption has not warranted the latest oil price rally which had a big risk premium in it.

“Prices have to move a long way before you get consumers rationing demand, certainly in developed economies. In China and some of the more developing economies where prices are managed and subsidised the impact is felt more quickly,” he said.

(Reporting by Claire Milhench; editing by James Jukwey)



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