UPDATE 3-Saudi says "achieved feat" in reducing oil prices

* Saudi's Naimi says has restored oil market stability

* Says oil prices now suitable for global economic growth

* Would like to see prices fall to $100 a barrel

* Higher Saudi output compensated for cut in Iran supplies

(Adds comments) By Reem Shamseddine and Angus McDowall

RIYADH, Oct 9 (Reuters) - Saudi Arabia is satisfied that oilprices have fallen to a level that does not hamper globalgrowth, Saudi Oil Minister Ali al-Naimi said on Wednesday,signalling success in a Gulf Arab effort to keep oil pricesunder control despite a halving of Iranian exports because ofWestern sanctions.

"Our countries have exerted major efforts to restore globaloil market stability, a feat that has actually been achieved,"Saudi Oil Minister Ali al-Naimi told a meeting of Gulf Arabenergy ministers in Riyadh.

"Stability has been restored and oil prices returned tolevels which are suitable to both the consuming and producingnations and to the global economy and its growth," Naimi said.

OPEC's biggest oil producer is likely to continue pumpingcrude at a 30-year highs of around 10 million barrels dailythrough October, Naimi said, helping compensate for a cut inexports from Iran, a fellow member of the Organization of thePetroleum Exporting Countries.

Riyadh has support from Gulf allies Kuwait and the UnitedArab Emirates in a campaign for lower prices that may raisecomplaints from others in OPEC when the group meets to setoutput policy in December.

Sanctions by the United States and Europe on Iran hadthreatened to backfire by pushing up oil prices, impeding theglobal economy and diluting the impact on Iran's oil revenues ofthe measures against Tehran's nuclear programme.

But the extra oil from Riyadh has helped compensate for ahalving of Iranian exports and reversed a spike in prices thattook Brent crude to $128 a barrel in March.

"We continued our policy of allaying market fears, providingsupplies when needed and limiting high price fluctuations duringthe ensuing months till this present day," said Naimi. He madeno mention of Iran in the speech to energy ministers of the GulfCooperation Council.

Oil prices have fallen from a peak for the year of $128 abarrel in March, with Brent trading at around $112 onTuesday.

The Saudi oil minister said he would like to see prices falllower still.

"We would like to see the price moderating. Today Brent is$111, I think, or $112, we would like to see it lower, towards$100," he told reporters after the meeting.

Naimi identified $100 a barrel as a suitable price during avisit to Japan, a major buyer of Saudi crude, earlier in theyear.

(Editing by Daniel Fineren, Richard Mably)

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Keywords: SAUDI OIL/GCC