Moniz sees oil market coming into balance

The U.S. energy secretary said July 1 he sees the global oil market coming into balance over the next year as rising demand catches up with a two-year-old supply glut that depressed prices.

Ernest Moniz said supplies should be adequate after the market comes into balance. He said Saudi Arabia has made clear it will maintain spare production capacity if it is needed by the market.

Moniz spoke after meeting with his Saudi counterpart, Khalid al-Falih, while both were in Beijing for a gathering of energy ministers from the Group of 20 major developed and emerging economies.

The Saudi minister told the Houston Chronicle on June 22 the oversupply of oil was ending and he expected markets to come into balance this year.

Crude prices tumbled from 2014 highs of more than $100 a barrel to a 13-year low of less than $30 in mid-February before rising to just under $50.

Moniz said higher prices could lead to more supply as operators develop additional U.S. wells.

- Associated Press