Arab Today, arab today saudi opec will not cut output even at 20 a barrel
Last Updated : GMT 21:34:07
Arab Today, arab today
Arab Today, arab today

Saudi: OPEC will not cut output even at $20 a barrel

Arab Today, arab today

Arab Today, arab today Saudi: OPEC will not cut output even at $20 a barrel

OPEC
Riyadh - AFP

OPEC will not cut oil production even if the price drops to $20 a barrel and it is unfair to expect the cartel to reduce output if non-members do not, Saudi Arabia said.
"Whether it goes down to $20 a barrel, $40, $50, $60, it is irrelevant," the kingdom's Oil Minister Ali al-Naimi said in an interview with the Middle East Economic Survey (MEES), an industry weekly.
In unusually detailed comments, Naimi defended a decision by the Organization of the Petroleum Exporting Countries, whose lead producer is Saudi Arabia, last month to maintain a production ceiling of 30 million barrels per day.
The decision sent global crude prices tumbling, worsening a price drop that has seen them fall by around 50 percent since June.
Slower demand growth and a stronger dollar have also contributed to the slump.
Saudi Arabia has traditionally acted to balance demand and supply in the global oil market because it is the only country with substantial spare production capacity, according to the International Monetary Fund.
The kingdom pumps about 9.6 million barrels per day but Naimi said it is "crooked logic" to expect his country to cut and then lose business to other major producers outside OPEC.
The increasingly competitive global oil market has seen daily United States output rise by more than 40 percent since 2006, but at a production cost which can be three or four times that of extracting Middle Eastern oil.
"Is it reasonable for a highly efficient producer to reduce output, while the producer of poor efficiency continues to produce?" Naimi asked during the interview conducted with MEES on Sunday.
"If I reduce, what happens to my market share? The price will go up and the Russians, the Brazilians, US shale oil producers will take my share."
Naimi added it is "unfair" for the cartel to reduce output because it is not pumping most of the world's oil.
"We produce less than 40 percent of global output. We are the most efficient producer. It is unbelievable after the analysis we carried out for us to cut," he said.
- Gulf can 'hold out' -
 OPEC tried to seek market stability through a common front between members and non-members "but there was no way," he said.
In Asian trade on Tuesday prices nudged higher on hopes of improved economic figures from the United States.
US benchmark West Texas Intermediate crude for February delivery gained 64 cents to $55.90 while Brent crude for February was up 33 cents to $60.44 in afternoon trade.
Prices were above $100 a barrel earlier this year, a level which Naimi said "we may not" see again.
Repeating comments he has made elsewhere, Naimi told MEES that oil prices will, however, improve.
"The timing is difficult to know," he said, but international oil companies have reduced their future capital expenditures, "which means there is no exploration".
That, in turn, signals they will not have additional production, he added.
The minister said OPEC was not surprised by the extent of the price drop.
"No, we knew the price would go down because there are investors and speculators whose job it is to push it up or down to make money," he told MEES.
Naimi said that with their comparatively low production costs of $4-$5 a barrel, Gulf nations and particularly Saudi Arabia "have the ability to hold out".
Other nations would be "harmed greatly before we feel any pain," he added.
Russia, whose estimated production topped 10 million barrels a day this year, has seen its ruble currency collapse since last month's OPEC meeting, partly from the slumping global prices which hit Russian exports.
Moscow is also under sanctions for its seizure of Ukraine's Crimea region.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today saudi opec will not cut output even at 20 a barrel Arab Today, arab today saudi opec will not cut output even at 20 a barrel

 



Arab Today, arab today

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today saudi opec will not cut output even at 20 a barrel Arab Today, arab today saudi opec will not cut output even at 20 a barrel

 



Arab Today, arab today Designer Rania Adel reveals her new collection

GMT 17:59 2017 Monday ,12 June

Designer Rania Adel reveals her new collection
Arab Today, arab today France defies terrorism through tourism

GMT 15:18 2017 Saturday ,20 May

France defies terrorism through tourism
Arab Today, arab today Mai Al-Jeddawi presents décor ideas for Ramadan

GMT 05:10 2017 Wednesday ,14 June

Oil prices edge down

GMT 05:22 2017 Tuesday ,13 June

Oil rises as investors buy into US crude

GMT 15:11 2017 Saturday ,10 June

Oil prices steady despite supply glut

GMT 14:28 2017 Sunday ,04 June

Kuwait oil price down 52 cents to USD47.83 pb

GMT 23:44 2017 Saturday ,03 June

OPEC daily basket price for Tuesday, 30th May 2017
View News in Arabic - Business: نفط وبتروكيماويات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday