October 10, 2011 / 7:26 AM / 8 years ago

UPDATE 1-Aramco: Oil prices still healthy to support investment-CNBC

* Oil prices still healthy enough to support investment

* Saudi Arabia has plenty of spare production capacity

* Confident euro zone crisis will get resolved -Falih (Adds comments on investments)

SINGAPORE, Oct 10 (Reuters) - Crude prices are still healthy enough to support investment, Saudi Aramco Chief Executive Khalid Al Falih told CNBC on Monday, adding that Saudi Arabia has plenty of spare oil producing capacity.

Crude prices were going in the wrong direction earlier this year given the fledgling global economic recovery, Falih said. Saudi Aramco assured markets there was plenty of spare capacity within the kingdom to address any shortages as the spike in prices coincided with the turmoil in North Africa and the Middle East.

“Sure enough we stepped up during the summer, our production responded to market demand and we met that demand and we are seeing prices come down to a more reasonable range,” Falih said. “There’s still healthy enough support, continued investment in future productive capacity in the upstream.”

There are concerns about a possible contagion if European governments do not resolve the problems facing the euro zone, Falih said.

“But I am confident that there is enough political intent to really resolve the issue and we are watching closely,” he told CNBC. (Reporting by Manash Goswami and Francis Kan; Editing by Michael Urquhart)

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