Saudi willing, able to make up Libya oil shortfall

Saudi willing, able to make up Libya oil shortfall

Saudi oil can be shipped through Saudi Arabia's East-West pipeline and then to the Mediterranean and on to Europe.

February 24, 2011 12:20 by Reuters

Saudi Arabia is willing and able to supply high quality, light oil to replace any lost Libyan crude, senior Saudi sources said on Thursday.

“Saudi is willing and capable of supplying oil of the same quality, either Arab extra light or through blending,” one source said.

“OPEC stipulates that it is able to supply all types of oil if needed,” the source added. “There is no reason for the price to go higher.” Oil prices have surged towards $120 a barrel in response to a wave of revolutionary unrest, currently focused on OPEC member Libya, which exports more than a million barrels per day.

To shorten the journey time, the sources said Saudi oil can be shipped through Saudi Arabia’s East-West pipeline and then to the Mediterranean and on to Europe.

Some West African crude, such as Angolan crude can also be redirected to Europe, the sources said, while Saudi Arabia could temporarily send extra oil to Asia to compensate.

(Reporting by Amena Bakr; Editing by Barbara Lewis and Amran Abocar)