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Saudi Arabia will do everything in its power to stabilize the oil market, but it can not and will not do it alone without a collective decision by OPEC and non-OPEC participants. said Saudi Energy Minister Khalid al-Falih on Wednesday.
"We will … do all that is necessary, but only if we act together, as a group of 25," al-Falih, quoted by Reuters, told reporters in Abuja, the capital of Nigeria, referring to the 25 OPEC countries led by Saudi Arabia and Russia. independent producers from OPEC countries who have tweaked their oil production in order to stabilize the market for almost two years.
In June, Saudi Arabia and Russia urged the group to start pumping more oil to compensate for what should be a sharp drop in the supply of Iranian oil with the sanctions imposed by the United States. But after the US granted exemptions to eight of Iran's top oil buyers, oil prices began to fall, fueled by fears of oversupply and slower growth in oil prices. global economy and oil demand.
Now, the Saudis need higher oil prices than Brent crude by $ 60, but Riyadh's earlier suggestion of an important decisive cut announced at the OPEC + meeting next week could be postponed. in question by the recent statement by President Trump. comments on the price of oil – "Thanks to Saudi Arabia, but let's go lower!" – and his support for the kingdom and his crown prince, Mohammed bin Salman, in the face of increasing calls in the United States to punish the Saudis for the murder of Jamal Khashoggi.
"As Saudi Arabia, we can not do it alone, we will not do it alone," al-Falih said Wednesday, citing a reduction in production, adding that "I think people know that leave the market alone, without clarity nor any collective decision to balance the market helps. "
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While Saudi Arabia launches the idea of a further reduction in production, its main non-OPEC ally in the agreement, Russia, is less convinced that it could participate in a new reduction, or at least let it believe the market.
Russian Minister of Energy is discussing the possibility of reducing local producers' oil production and will continue discussions with a view to reaching a position at the OPEC / non-OPEC meeting scheduled for early December, said Minister of Energy Alexander Novak last week. Another meeting with Russian oil companies took place on Tuesday, Reuters reported on Wednesday, citing two sources who knew that such a meeting was taking place.
By Tsvetana Paraskova for Oilprice.com
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