The oil ministers of Saudi Arabia and the United Arab
Emirates have defended Opec’s decision not to cut production despite a
glut, and blamed speculators and producers outside the cartel for the slump in oil prices
Both stuck to their stance of keeping production at current levels, expressing hope that the market would stabilise on its own
Saudi oil minister, Ali al-Naimi said in Abu Dhabi on Sunday Dec 21,2014: “The kingdom of Saudi Arabia and other countries sought to bring back balance to the market, but the lack of cooperation from other producers outside Opec and the spread of misleading information and speculation led to the continuation of the drop in prices.”
Referring to producers outside Opec, he said: “If they want to cut production, they are welcome: We are not going to cut; certainly Saudi Arabia is not going to cut.”
UAE’s oil minister, Suhail Bin Mohammed al-Mazroui said one of the main reasons for the fall in prices was “the irresponsible production of some producers from outside Opec”. He reiterated that “Opec is not a swing producer” and “it’s not fair that we correct the market for everyone else”. Kuwaiti oil minister Ali al-Omair also saw no need for Opec production cuts or an emergency meeting before its next scheduled talks in June.
Iraqi oil minister Adel Abdul Mahdi said the cartel would have to “wait and see” whether it was right to keep its output unchanged
Russia, the world’s second-largest oil exporter after Saudi Arabia, also dashed hopes it might cut production after Opec’s meeting in Vienna last month.
Note
Oil Prices have nearly halved in the last six months with the international benchmark Brent crude falling below $60 a barrel last week, the lowest in more than 5 years.
The world is expected to need less Opec oil in 2015 because of the increasing supply of US shale oil and other sources, with no significant rise in world demand expected.
Both stuck to their stance of keeping production at current levels, expressing hope that the market would stabilise on its own
Saudi oil minister, Ali al-Naimi said in Abu Dhabi on Sunday Dec 21,2014: “The kingdom of Saudi Arabia and other countries sought to bring back balance to the market, but the lack of cooperation from other producers outside Opec and the spread of misleading information and speculation led to the continuation of the drop in prices.”
Referring to producers outside Opec, he said: “If they want to cut production, they are welcome: We are not going to cut; certainly Saudi Arabia is not going to cut.”
UAE’s oil minister, Suhail Bin Mohammed al-Mazroui said one of the main reasons for the fall in prices was “the irresponsible production of some producers from outside Opec”. He reiterated that “Opec is not a swing producer” and “it’s not fair that we correct the market for everyone else”. Kuwaiti oil minister Ali al-Omair also saw no need for Opec production cuts or an emergency meeting before its next scheduled talks in June.
Iraqi oil minister Adel Abdul Mahdi said the cartel would have to “wait and see” whether it was right to keep its output unchanged
Russia, the world’s second-largest oil exporter after Saudi Arabia, also dashed hopes it might cut production after Opec’s meeting in Vienna last month.
Note
Oil Prices have nearly halved in the last six months with the international benchmark Brent crude falling below $60 a barrel last week, the lowest in more than 5 years.
The world is expected to need less Opec oil in 2015 because of the increasing supply of US shale oil and other sources, with no significant rise in world demand expected.
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