Saudi Arabia produced 9.15 million b/d in February and supplied 9.16 million b/d to markets as output fell by 100,000 b/d over January, but the OPEC kingpin is likely to raise production in the coming months as demand picks up, a Gulf source said Monday.
"I think the market is balanced. It's a little bit on the tight side because of refining maintenance in Asia and many other areas," the source said. "We expected the stock build in the second quarter and a little bit in the third quarter."
The source, who declined to be identified, said that oil prices were also expected to hold steady, assuming there is no unforeseen geopolitical development that would impact markets.
"I don't see any major change this year that will impact either prices or the supply and demand picture," the source said, adding: "I think it's going to be stable unless there is something that we don't know about like geopolitics."
"Generally the market is expected to be stable," the source said adding that oil prices might move by $2-$3/barrel "up or down" or in a worst-case scenario by $5/b.
