Market has capacity to absorb higher oil prices: Saudi minister

Jeddah (Saudi Arabia) (AFP) – Saudi Energy Minister Khaled al-Faleh said on Friday the global market has the capacity to absorb higher oil prices after crude made a strong recovery.

“I have not seen any impact on demand with current prices. We have seen prices significantly higher in the past — twice as much as where we are today,” Faleh told reporters ahead of an oil producers’ meeting in Jeddah, Saudi Arabia.

“Energy intensity as you know has declined significantly … this reduced energy intensity and higher productivity globally of energy input leads me to think that there is the capacity to absorb higher prices,” Faleh said.