Saudi, UAE will not push for oil output cut
27 Nov 2014
(MENAFN) Saudi Arabia and the UAE said that they are unlikely to push for a major change in oil output, despite the continuous drop in oil prices since June, which resulted in oil to fall to below USD79 per barrel as a result of US shale boom and slower economic growth in China and Europe, Arab News reported.
Both countries said that they expect that oil prices would soon stabilize, especially since this is not the first time that oil prices drop to this level and despite expectations by OPEC that global supply will exceed demand by more than 1 million barrel per day during the first half of next year.
Meanwhile, Iran said that some OPEC members are now preparing for a battle over market share as well as saying that non-OPEC producers needed to participate in any decision made by OPEC which accounts for a third of global oil output, to cut its oil output.
On the other hand, on-OPEC Russia, which produces 10.5 million barrels per day (bpd) or 11 percent of global oil, said it is not planning to reduce its oil output even if oil falls to USD60 per barrel, with the country’s energy ministry saying that their energy companies would produce around the same amount of oil next year as they did in 2014.