Saudi Oil Minister al-Naimi says it is "difficult, if not impossible" for OPEC or Saudi to give up market share by cutting crude production, and data confirmed Saudi crude oil exports rose to 6.897mln bpd in October, up from 6.722mln bpd in September. This was then followed by the UAE Oil Minister confirming OPEC will not change output levels and has no intention of holding an emergency OPEC meeting. However, the crude complex got a boost by ignoring this and anchoring on al-Naimi's comments that, as Bloomberg reports, [7] the global oil markets are experiencing "temporary" instability caused mainly by a slowdown in the world economy, sabre-rattling that increased supply from regions outside OPEC (cough US cough), where oil-production costs are higher, is affecting the market.
Oil prices jumped from $56.50 to briefly break above $59 (as it did yesterday in its spike) before giving it all back...
[8]
As Bloomberg reports [7],
Saudi Arabia and OPEC would find it “difficult, if not impossible” to give up market share by cutting crude production, the country’s oil minister said.
Global oil markets are experiencing “temporary” instability caused mainly by a slowdown in the world economy, Oil Minister Ali Al-Naimi said, according to comments published today by the Saudi Press Agency. He reiterated the country’s intention to maintain output amid plunging prices.
“In a situation like this, it is difficult, if not impossible, that the kingdom or OPEC would carry out any action that may result in a reduction of its share in market and an increase of others’ shares,” Naimi said, according to the state-run news agency. Saudi Arabia, the largest producer in OPEC, will stick to its oil policies, he said.
...
Increased supply from regions outside OPEC, where oil-production costs are higher, is affecting the market, Naimi said. Saudi Arabia’s crude output has remained stable as production in other regions rose, he said.
Saudi Arabia has large enough financial resources to resist the economic impact of the current oil price fluctuations, Naimi said.
The decline in prices won’t last long, Suhail Al-Mazrouei, energy minister in the United Arab Emirates, said today, according to that country’s state-run news agency.
* * *
