Saudi energy minister out on Reuters from interview with Argus 2 June 2016

  • falling investments and impact on supply is of concern to us, needs managing
  • prices will come to a healthy level
  • high end of price level of past decade may not be sustainable
  • recent prices unsustainable either as they fail to attract investment
  • equilibrium price likely to be between these two levels
  • Saudi Arabia has not abandoned policy of keeping spare capacity
  • crude programme designed to maintain capacity at 12.5m bpd
  • not increasing capacity now but would not rule it out
  • inventory drawdown will accelerate as demand continues to grow and supplies continue to lag

Continues to ? What am I missing here then? Either way it doesn't sound like the talk of a man favouring output freezes any time soon.

The OPEC meeting continues in Vienna with presser due around 15.00 GMT

Brent $ 50.02 WTI 49.27