Rising oil prices are not justified by the present dynamics of global supply and demand, according to Ali al-Naimi, Saudi Arabia’s oil minister.

The Opec Basket Price has risen 28 per cent since its $88.74 a barrel trough on 22 June, reaching $113.36 on 12 September after rising steadily through July and early August.

“Saudi Arabia is concerned about rising oil prices in the international oil market. The price of oil is simply not supported by market fundamentals,” Al-Naimi told the official Saudi Press Agency. “The market is well balanced, forward cover remains within an acceptable range and inventories are more than adequate.”

The minister said Saudi Arabia and its GCC neighbours Kuwait and the UAE were working together to help moderate prices and “defend the stability of the oil market”.

According to a Reuters report, citing industry sources, Saudi Arabia cut production by 100,000 barrels a day (b/d) to an average of 9.7 million b/d in August.