Vienna (Platts)--9Sep2008

Saudi Arabian oil minister Ali Naimi said Tuesday that oil markets were
"fairly well balanced" and the kingdom had worked "very hard" since June to
bring oil prices down to their current levels.

"The market is fairly well balanced and we have worked very hard since
the June meeting to bring prices to where they are now," Naimi told reporters
on arrival in Vienna for an OPEC meeting when asked to comment on calls by
some ministers for stricter adherence to OPEC's official output targets.

"I think we have been very successful," he added, referring to the more
than 30% fall in oil prices since a peak of more than $147/barrel achieved in
July.

"I will leave the conclusion to you but I think everything is in balance.
Inventories are in a healthy position," he added.

Asked whether Saudi Arabia, OPEC's biggest oil producer and the most
influential member of the 13-member group, had cut back on its production in
August from July levels, Naimi repeated the kingdom's position to supply all
its crude oil customers with their needs.

"We will do what I have said before. We have customers and we will
satisfy their demand ... whatever our customers want we will satisfy," Naimi
said. He did not provide a production figure for August, referring reporters
to the Joint Oil Data Initiative (JODI) web site.

Saudi Arabia has raised its crude oil production by a total 750,000 b/d
since June in a unilateral move, saying it had acted in response to requests
from its buyers for additional barrels.

Iran, OPEC's second biggest producer, has called for excess production
beyond the 29.673 million b/d official target to be reined in to mop up excess
supply and prevent a further slide in oil prices.
--Staff reports, newsdesk@platts.com