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FINANCIAL NEWS
Saudi to maintain oil output
22 Dec 2014
(MENAFN) Saudi Arabia’s Oil Ministry said that the kingdom would not cut its oil output, even if non-OPEC nations did so and despite the continuous fall in the oil prices, which recently reached their five-year low, Gulf Daily News reported.
Saudi, the world’s top petroleum exporter, said that despite not being pleased with the current prices of oil, it was confident that the market will fix itself, but that it would need cooperation from both OPEC members and non-members too.
Saudi decision not to cut its output production of oil comes despite global forecasts expecting that the world will need less oil from OPEC in 2015 due to a rising supply of US shale oil and other competing sources, in addition to expectations that global demand for oil will not increase next year.
“OPEC’s decision not to cut production would ultimately help the world economy. Current prices do not encourage investment in any form of energy, but they stimulate global economic growth, leading ultimately to an increase in global demand and a slowdown in the growth of supplies,” Saudi’s Minister of Oil was quoted saying.
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