Saudi Arabia Says ‘Why Should I Cut Production?’ as Crude Falls

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Saudi Arabia Says ‘Why Should I Cut Production?’ as Crude Falls

Saudi Arabia’s oil minister indicated the nation isn’t planning to cut production even as crude fell to its lowest since 2009.

“Why should I cut production?” asked the minister, Ali Al-Naimi, who spoke to reporters as he attended United Nations global warming talks in Lima, Peru. “You know what a market does for any commodity. It goes up and down and up and down.”

The nation, the biggest producer in the Organization of Petroleum Exporting Countries, supplied 9.6 million to 9.7 million barrels a day last month. Brent crude futures in London fell below $65 a barrel for the first time since 2009 today.

“This is a market and I’m selling in a market. Why should I cut?,” Naimi said. Asked if the market will correct itself, he said “that is what markets do.”

Asked if he was worried about the market, he said, “do I look worried?”


Saudi Arabia Says ‘Why Should I Cut Production?’ as Crude Falls - Bloomberg
 

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Oil prices have gone down significantly, I don't know whether to be happy or concerned.
 
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Saudi Arabia Says ‘Why Should I Cut Production?’ as Crude Falls

Saudi Arabia’s oil minister indicated the nation isn’t planning to cut production even as crude fell to its lowest since 2009.

“Why should I cut production?” asked the minister, Ali Al-Naimi, who spoke to reporters as he attended United Nations global warming talks in Lima, Peru. “You know what a market does for any commodity. It goes up and down and up and down.”

The nation, the biggest producer in the Organization of Petroleum Exporting Countries, supplied 9.6 million to 9.7 million barrels a day last month. Brent crude futures in London fell below $65 a barrel for the first time since 2009 today.

“This is a market and I’m selling in a market. Why should I cut?,” Naimi said. Asked if the market will correct itself, he said “that is what markets do.”

Asked if he was worried about the market, he said, “do I look worried?”
Well my pockets are saying yes, keep on dropping. A 45 minute drive to work can add up to at lease a few hundred a month. I'm sure the prices won't stay low for to long, it's all a game.

Saudi Arabia Says ‘Why Should I Cut Production?’ as Crude Falls - Bloomberg
 
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So does anyone now believe U.S invaded Iraq for oil concerns? I'm just amazed at how low gas prices are coupled with the fact the oil field jobs in my area aren't slowing one bit. I hope they keep it up. I even remember reading some story about peak oil a while back, guy actually had me convinced, geez.
 
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In a way, this fall in oil prices is helping to win the battle against the Daesh. I read that the Daesh is getting a lot of money from selling oil on the black market. With falling prices, they are getting a lot less money, which means they can buy less arms, for a start.
 
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This hurts Russia the most. With oil their biggest export, their economy is in more trouble than it already is.
 
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A random thought just popped into my mind. Is it possible that this fall in oil price is orchaestraed by the US? US, the last I checked, actually had its own ample oil supplies at home. It doesn't have to import oil if it doesn't want to. However, the situation is very different for those countries which depend mainly on oil exports for their national income. Is it possible that this fall in oil prices is another variation of using oil as a weapon?
 
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[QUOTE="Is it possible that this fall in oil prices is another variation of using oil as a weapon?[/QUOTE]

Yeah of course, while not being heavily reported, Putin is in talks with current administration trying to make concessions right now. Iran is probably worse off than Russia, especially have more sanctions to deal with. Then the American companies that handle logistics and infrastructure are able to negotiate better terms concerning their contracts with these oil producers. You're right.....following the money will net one more accurate information than anything else in my opinion.
 
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Yeah of course, while not being heavily reported, Putin is in talks with current administration trying to make concessions right now. Iran is probably worse off than Russia, especially have more sanctions to deal with. Then the American companies that handle logistics and infrastructure are able to negotiate better terms concerning their contracts with these oil producers. You're right.....following the money will net one more accurate information than anything else in my opinion.
And while they play their games, we, the consumers, will just enjoy lower oil prices at the pumps. For a change, we, the man on the street, is getting something good out of this.
 
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And while they play their games, we, the consumers, will just enjoy lower oil prices at the pumps. For a change, we, the man on the street, is getting something good out of this.
Hells yeah!!!! I know it's not astute of me, but I've been filling up and just driving for the fun of it. I still can't believe I'm seeing gas prices from when I was a child. I get a Grinch-like smirk on my face every time I fill up. I hope it last as long as ever. Like I mentioned before, the oilfield jobs in this region I stay in are not slowing at the moment. They actually seem to be more aggressive with their plans.

I know of this pipeline further down south from me, in a parish (county) called Cheinere that got the green light from Congress last year. This will be for natural gas, and it goes all the way to China when completed. I'm sure China won't be getting the hometown discount. I think some of the other pipelines are under political pressures, but our state needs the jobs. So hopefully, prices can average out around the two dollar range long term for oil.
 
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#12
Petrol prices in Malaysia and Thailand are less than 1usd per litre. So what are the current petrol prices in other countries now?
 
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