Saudi Arabia says won't let another glut form

World's biggest oil exporter Saudi Arabia today said it will not sit by and let another supply glut surface that will dry up investments but also does not want rates to rise to "unreasonable levels".

Speaking on the sidelines of the International Energy Forum, a gathering of oil producers and consumers, Saudi Oil Minister Khalid al-Falih said the OPEC kingpin is trying to ensure that there is a close match of supply and demand "so that markets are not worried about gluts and over-supply and continued investment will flow into the industry."
Saudi Arabia was "extremely concerned" when oil approached USD 150 a barrel in 2007 as they ultimately crash due to over-supply and reduction in demand. Vice versa is also true as when rates, investment stop, and oil production capacity rapidly declines, resulting in a squeeze and imbalance and prices spike up. "As a result consumers are hurt in long term."