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FINANCIAL NEWS
Saudis to cuts oil prices for Asia, US
05 Dec 2014
(MENAFN) Saudi Arabia decided to steeply cut its January oil prices for Asian and US buyers in a move to ensure that the country will be able to maintain its market share a week after refusing to support OPEC output cuts, Gulf News reported.
The decision follows Saudi Arabia and other Gulf producers blocking proposals from some other OPEC members, such as Venezuela and Algeria, to cut output to support oil prices and insisting that the organization needs to defend its market share as production cuts would only boost rival producers, including US shale oil.
However, despite OPEC’s decision to maintain its oil production, oil prices continued their decline in prices, which began last June, resulting in oil prices currently reaching their five-year low.
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