• 1 hour The Federal Reserve and Money...Aspects which are not widely known
  • 8 minutes How Far Have We Really Gotten With Alternative Energy
  • 12 minutes  What Russia has reached over three months diplomatic and military pressure on West ?
  • 2 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 4 days Coincidence of EIA Report Delay? - "I had seen it delayed minutes, and a couple of times a few hours, but don’t recall something like this — do others?" asks Javier Blas
  • 2 days European Parliament Members, Cristian Terhes et al, push back against Totalitarian Digital ID and Carbon Tyranny in Europe.
  • 4 days "...too many politicians believe things that aren’t true." says Robert Rapier
  • 17 hours "How Long Will The Epic Rally In Energy Stocks Last?" by Tsvetana Paraskova at OILPRICE.COM
  • 5 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 5 days Demonising fossil fuels has caused major grid problem in Australia
  • 4 days Welcome to Technocracy - The New World Energy Order... "1000s Of Sydney Homes Plunged Into Darkness As Aussie 'Price Cap' Policy Sparks Energy Shortage"
  • 6 days "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"
  • 330 days Beware the Left's 'Degrowth' Movement (i.e. why Covid-19 is Good)
  • 8 days ESG Topic - "German Police Raid Deutsche Bank, DWS Over Allegations Of Greenwashing" - ZeroHedge Bloomberg and others
The Oil Price Rally Shows No Sign Of Slowing

The Oil Price Rally Shows No Sign Of Slowing

A perfect storm is gathering…

U.S. Gulf Coast Crude Exports Are Breaking Records

U.S. Gulf Coast Crude Exports Are Breaking Records

Despite the domestic supply issues,…

Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

Saudi Minister: OPEC Wants “Fair” Price For Its Oil

The Organisation of Petroleum Exporting Countries is looking for a “fair” price for its crude, Saudi Arabia’s Foreign Minister, Prince Faisal bin Farhan said this week after a meeting with his counterpart from Russia, Sergey Lavrov.

“I would like to assure that we and Russia would like an oil price which is fair to consumers and to producers,” bin Farhan said, adding, “This is what OPEC+ looks to achieve and there is good coordination in this initiative and we continue in working to support what benefits the global economy.”

Lavrov, for his part, noted that the OPEC+ alliance was strong, and there was nothing that could, at this point, undermine the good working relationship between Russia and Saudi Arabia.

Lavrov also said the purpose of the OPEC+ agreement was to restore balance on global oil markets and reduce volatility, saying he hoped that the extended cartel would “find a way to coordinate our actions in such a way as balance the interests of both producers and consumers.”

Finding this balance might prove tricky, however. Most OPEC members would like higher prices—the higher, the better, including Saudi Arabia—while most consumers would prefer much lower prices.

India, for instance, has been particularly vocal in its dissatisfaction with OPEC+ cuts. One of the world’s biggest oil importers repeatedly asked the cartel to reconsider the cuts, most recently warning that rising oil prices would threaten its economic recovery from the pandemic.

Following this warning, India started looking for alternative suppliers to its regular oil partners from the Middle East who are pushing for higher prices.

“We have asked companies to aggressively look for diversification. We cannot be held hostage to the arbitrary decision of Middle East producers. When they wanted to stabilize the market we stood by them,” a government source told Reuters this week.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment
  • Mamdouh Salameh on March 11 2021 said:
    According to its constitution, the role of OPEC is to look after the interests of its members and also work to maintain stability of the global oil market and prices. This means maximizing oil prices to the level that the global economy can tolerate.

    The ‘black gold’ which is the blood of the global economy is depleting quickly. Therefore, its price should be commensurate with its unrivalled value to the world.

    In my opinion, a fair oil price ranges from $100-$110 a barrel. Such a price invigorates the global economy and stimulates therefore global oil demand.

    And contrary to claims that high oil prices slow down oil demand, both the global economy and global oil demand are stimulated by high oil prices. The rationale is that the global economy is made up of three major chunks: the global investments, the global oil industry and the economies of the oil-producing countries all of which would be invigorated by higher oil prices leading to growth in the global economy and therefore global oil demand.

    In 2008 surging global oil demand sent crude prices to $147 but global demand didn’t collapse because of that price but because of the collapse of the US housing market that virtually brought down the global economy and the banking system to their knees thus leading to a collapse of global oil demand.

    Saudi Arabia and the overwhelming members of OPEC+ with the exception of Russia need a minimum oil price of $80 to balance their budgets. But with a growing economy, growing world population and surging global oil demand, an $80 oil is too low. That is why $100-$110 oil is a good price range for the global economy, consumers and producers alike. I feel confident that we will see we see such a price again within the next three years.

    Dr Mamdouh G Salameh
    International Oil Economist
    Visiting Professor of Energy Economics at ESCP Europe Business School, London

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News