No policy change expected at OPEC meet
November 26, 2014, 5:44 pm

Saudi Arabia appeared to be reiterating an earlier statement made by OPEC Secretary-General Abdalla Al-Badri, who said market determinant factors were sound [Xinhua]

In remarks made to the media ahead of a critical OPEC meeting in Vienna on Thursday, Saudi Arabian Oil Minister Ali Al-Naimi appeared to indicate that his country would not take any measures or change policy as oil prices continue to fall.

He appeared to be reiterating an earlier statement made by OPEC Secretary-General Abdalla Al-Badri, who said market determinant factors were sound.

Oil prices have fallen about 30 per cent since June.

Benchmark Brent crude dipped to $77.43 a barrel in London trading as US crude fell to $73.44, continuing a two-day trend that has seen overall prices hit four-year lows.

Russia and Mexico, which heavily rely on oil exports as staples of their economic stability, have been pressuring Saudi Arabia, the world’s largest producer and considered a dominant force in OPEC, to adopt a policy which lowers global supply in a bid to raise prices again.

Venezuelan Foreign Minister Rafael Ramirez, who attended the meetings between the Russians and the Saudis, told the media that there was consensus that falling current prices were “not good”, but no agreement reached to deal with the markets.

It was during the early summer months that energy speculators believed that the crises and violence in Iraq and Libya would threaten oil production there.

That never materialized and the Libyans, despite their turmoil, have managed to steadily increase production from over 700,000 barrels a month to over 900,000 barrels a month.

Supply is overtaking demand, many experts say, and with waning economic prospects in Europe – and a stabilizing of the Chinese powerhouse – the thirst for oil appears to be settling down.

Source: Agencies