Saudi Arabia Won’t Cut Crude Output, Oil Minister Al-Naimi Says – Bloomberg Business

Saudi Arabia won’t cut oil production as other countries would be unlikely to assist in restraining output, leaving the burden of adjusting supply with high-cost producers, Oil Minister Ali Al-Naimi said.
“Not many countries are going to deliver” even if they promise supply curbs, al-Naimi said at the IHS CERAWeek conference in Houston Tuesday. An accord last week to freeze the oil production of Saudi Arabia, Russia, Qatar and Venezuela at January levels is “not like cutting production, that’s not going to happen.”
Instead, high-cost producers will have to “lower costs, borrow or liquidate” to cope with the slump in oil prices, al-Naimi said, adding that he doesn’t know when the current rout will end. This is a “more efficient” way for the market to rebalance than cuts by low-cost producers like Saudi Arabia, which would only delay the “inevitable reckoning” needed for supply and demand to realign, he said.

via Saudi Arabia Won’t Cut Crude Output, Oil Minister Al-Naimi Says – Bloomberg Business.

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About marypmadigan

Writer/photographer (profession), foreign policy wonk (hobby).
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