Opec will not reduce output to shore up prices because it would lose market share to other producers, the Saudi oil minister Ali Al Naimi said yesterday.
Brent rose 2 per cent to above US$62 a barrel in early trading yesterday, nearly 50 per cent lower than the $115 reached in June. "In a situation like this, it is difficult, if not impossible, for the kingdom or Opec to take any action that would reduce its market share and increase the shares of others, at a time in which it is difficult to control prices. We would lose market share and price," Mr Al Naimi told the state-run Saudi Press Agency.
He added that the oil price rout is just a temporary blip.
Mr Al Naimi's comments were echoed by the UAE Minister of Energy Suhail Al Mazrouei. He said the oil price drop is temporary and will not effect the country's oil investment plans, in remarks carried by Wam. The UAE plans to boost its oil output capacity to 3.5 million barrels per day by 2017 from about 3 million bpd now. "No one likes the decline in prices at the moment, but it is not right for just one producer to intervene. The one causing the decline must contribute in fixing the market imbalance," said Mr Al Mazrouei.
dalsaadi@thenational.ae
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