'No output cut even if oil at US$20'

Publish date: Wed, 24 Dec 2014, 03:14 AM

RIYADH: The Organisation of the Petroleum Exporting Countries (Opec) will not cut oil production even if the price drops to US$20 (RM70) 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 US$20 a barrel, US$40, US$50, US$60, it is irrelevant," the kingdom's Oil Minister Ali al-Naimi said in an interview with the Middle East Economic Survey, an industry weekly.

Naimi defended a decision by Opec last month to keep an output ceiling of 30 million barrels per day.

Brent for February was up 15 cents at US$60.26 by 0930 GMT in London trading yesterday. US light crude rose more than a dollar to a session high of US$56.85 a barrel in early trade before retreating to around US$55.70. Agencies

Discussions
1 person likes this. Showing 5 of 5 comments

n00bpelabur

Post removed.Why?

2014-12-24 17:05

Lotusf1

Nooobplbr - i am with u minus ur language! If price drops to blow $50 ,Saudi will be under intense pressure o act fm non arb members ,see who cn withstand tis tsunmi test!

2014-12-25 14:44

khengkhong

It's just figure of speech. what opec want to say is, they will not cut output because they are efficient producers, it is the shale oil producers should be making output cut. Shale oil producers are not efficient, today they can produce 30 mil bbbl, tomorrow 10 mil bbbl. But opec can produce consistently.

2014-12-25 14:53

khengkhong

Saudi will not be pressured at all. it is shale oil producers under tremendous pressure. Under current market price, many shale oil producers will collapse. even if price go back to 100, shale oil producers cannot produce consistent according to market needs. they will continue to produce erratic output only to disrupt market.

2014-12-25 15:11

Lotusf1

I think world searching fr answer as where oil price going to be n if it is going to fall to x value ..but when ? .we sould not be wasting our time thinking $20 ,when it is not even $53..

2014-12-25 16:16

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