Al-Naimi: Only Allah Knows Where Oil Prices Will Go
How long will Saudi Arabia allow oil prices to drop as the country’s production remains unchanged? Only Allah knows the answer.
Saudi Minister of Petroleum and Mineral Resources Ali Al-Naimi told CNBC as much when asked about where oil prices were heading amid speculation as to how long the country would maintain the status quo before cutting production. Al-Naimi added he wasn’t worried about the possibility of Iranian crude entering the mix as sanctions were lifted as part of Iran’s international nuclear deal, even though it would likely add to the growing glut and prompt lower prices still upon introduction.
The ongoing decline in oil prices began last year when OPEC kept production at 30 million barrels a day in order to maintain its share of the market against the likes of Canadian shale and U.S. crude from North Dakota.
Currently, Brent and West Texas Intermediate crude are trading for around $68/barrel and $60/barrel, respectively, helped by protests in Libya hampering exports, and possible disruptions linked to the ongoing conflict in Yemen.
Seattle-based writer, blogger, and photographer for many a publication. Born in Louisville. Raised in Kansas. Where I lay my head is home.
More by Cameron Aubernon