• 4 minutes Will We Ever See 100$+ OIL?
  • 8 minutes Iran downs US drone. No military response . . Just Destroy their economy. Can Senator Kerry be tried for aiding enemy ?
  • 11 minutes Energy Outlook for Renewables. Pie in the sky or real?
  • 3 hours Shale Oil will it self destruct?
  • 1 hour NYT: Mass Immigration Roundups in U.S. to Start Sunday
  • 4 hours South Korea imports No Oil From Iran in June - First-Half Imports Fall 37%
  • 3 hours U.S. Adminsitration Moves To End Asylum Protections For Central Americans
  • 2 hours U.S.- Taiwan: China Says Will Freeze Out U.S. Companies That Sell Arms To Taiwan
  • 14 hours Rising air pollution and green house effect
  • 1 day Panama revoked registrations of tankers flying under their flag that have not complied with sanctions. Most are Iranian tankers. Vessel seized in Gibraltar, Grace I, flying under Panamanian Flag. Registration revoked in May. England seizing justified
  • 14 hours Starlink Internet Courtesy of Tesla
  • 2 days Alliance: Ford - VW Extend Multibillion-Dollar Alliance To Electric, Automated Cars
  • 23 hours Is This The End of BBQ?
  • 17 hours Oil Price Could Fall To $30 If Global Deal Not Extended
  • 6 hours Germany exits coal: A model for Asia?
  • 13 hours U.S. Economic Expansion: Rich Get Richer
Alt Text

The Bullish Case For Oil

Oil demand is looking shaky,…

Alt Text

Renewables On Track To Pass Nuclear Energy

Though coal is still the…

Zainab Calcuttawala

Zainab Calcuttawala

Zainab Calcuttawala is an American journalist based in Morocco. She completed her undergraduate coursework at the University of Texas at Austin (Hook’em) and reports on…

More Info

Premium Content

Saudi Oil Minister Says Market Intervention Is Ineffective

Saudi Arabia will only play steward of global oil production for a limited period before stepping back and allowing the free market to complete the supply rebalancing act, Saudi Oil Minister Khalid A. Al-Falih told CNBC on Tuesday.

"History has demonstrated that intervention in response to structural shifts is largely ineffective, and I believe we in the organization have learned that lesson. That's why Saudi Arabia does not support OPEC intervening to alleviate the impacts of long-term structural imbalances," he said.

As the largest producer in the Organization of Petroleum Exporting Countries (OPEC), the KSA is the de facto leader of the group, which includes other major Persian Gulf producers, namely Iran and Iraq.

The members of the bloc, along with 11 other non-members, agreed to cut production by 1.8 million barrels in an effort to lower supply after 2.5 years of glut. Overall, compliance to the deal has been high by members of OPEC, who have made 94 percent of the promised reductions. A closer look reveals that Saudi Arabia has been cutting almost twice as much as it had agreed to in order to keep barrel prices growing since other nations have struggled to meet their numbers.

The eleven non-OPEC nations that agreed to downsize production agreed to a combined cut of almost 600,000 barrels, but compliance amongst these countries has hovered around 66 percent over the past two months. Oil officials from Iraq and NOPEC Russia both believe it is too early to consider extending the deal to beyond its current six-year term.

"In light of improving fundamentals, whose effect has been amplified by the OPEC and non-OPEC cooperation framework, I am optimistic about the global market outlook in the weeks and months ahead," the Saudi official said. "Though I would caution that my optimism should not tip investors into what I would call irrational exuberance or wishful thinking that OPEC or the kingdom will underwrite the investments of others at our own expense and long-term interests."

By Zainab Calcuttawala for Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage


Leave a comment
  • Rick on March 07 2017 said:
    Bearish
  • Matthew Biddick on March 07 2017 said:
    "Though I would caution that my optimism should not tip investors into what I would call irrational exuberance or wishful thinking that OPEC or the kingdom will underwrite the investments of others at our own expense and long-term interests."

    United States shale drillers, are you paying attention?

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play