High oil prices a concern for head of Saudi oil firm

OIL prices dipped yesterday after the head of Saudi Arabia’s state-owned oil company expressed concern that the high price level could damage the global economy.

Khalid al-Falih, chief executive of Aramco, said Saudi Arabia was not comfortable with the level of the oil price, echoing comments from Saudi oil minister Ali al-Naimi last week.

“We are not comfortable with oil prices where they are today...I am concerned about the impact it could have on the global economy,” Falih told a conference in South Korea.

Brent crude futures have risen to $124 per barrel from $95 three months ago as Middle East unrest added to growing energy demand from emerging markets. But Saudi Arabia has cut oil output, citing market oversupply due to the pressure of high prices on recovering economies.