X

Sign Up To Our Free Newsletter

Join Now

Thanks for subscribing to our free newsletter!

ERROR

  • 3 minutes Texas forced to have rolling brown outs. Not from downed power line , but because the wind energy turbines are frozen.
  • 7 minutes Scientists Warn That Filling The Sahara With Solar Panels Is A Bad Idea
  • 11 minutes United States LNG Exports Reach Third Place
  • 15 minutes Joe Biden's Presidency
  • 46 mins U.S. Presidential Elections Status - Electoral Votes
  • 51 mins Texas forced to have rolling black outs, primarily because of large declines in output from fossil fuel power plants
  • 6 hours Good Marriage And Bad Divorce: Germany's Merkel Wants Britain and EU To Divorce On Good Terms
  • 1 day Retired RAF pilot wins legal challenge over a wind farm
  • 3 days Interest article about windmills and waterwheels in Europe
Brazil’s Oil Industry Shakeup Could Be Devastating For Its Economy

Brazil’s Oil Industry Shakeup Could Be Devastating For Its Economy

President Bolsonaro’s decision to oust…

Why Big Oil Expects Record Cash Flow In 2021

Why Big Oil Expects Record Cash Flow In 2021

After having posted record losses…

Charles Kennedy

Charles Kennedy

Charles is a writer for Oilprice.com

More Info

Premium Content

Saudi Oil Minister Says Oil Production Cut “Not Going To Happen”

Saudi Arabia’s oil minister spoke in Houston at the IHS CERAWeek conference, where he poured cold water on the prospect of a production cut.

Saudi oil minister Ali al-Naimi, one of the most important voices in the oil world, spoke at the conference on Tuesday. He first suggested that the production freeze being negotiated between several key OPEC members and Russia could be a building block. “Freeze is the beginning of a process, and that means if we can get all the major producers to agree not to add additional balance, then this high inventory we have now will probably decline in due time. It's going to take time," Naimi said.

That would echo the comments made by OPEC Secretary General on Monday. “This is the first step to see what we can achieve,” Secretary General Abdalla Salem El-Badri said at the conference on Monday. “If this is successful, we will take other steps in the future.” He declined to elaborate on what “other steps” might entail, but the markets took it as good news that a production cut was on the table. Oil prices surged by 6 percent on Monday. Related: Iraq On The Brink Of Chaos As Oil Revenues Fall

While Saudi oil minister al-Naimi seemingly backed that statement up on Tuesday, he followed that up with another comment that crushed the hopes of oil bulls. Speaking of the production freeze, he said: "It is not like cutting production. That is not going to happen because not many countries are going to deliver even if they say they will cut production, they will not deliver. So there is no sense in wasting our time seeking production cuts," he added.

Oil prices were trading higher just before those comments on Tuesday morning. However, after al-Naimi basically ruled out an OPEC production cut, oil prices crashed. WTI was down nearly 5 percent by 11:00 AM and Brent was down just over 4 percent.

By Charles Kennedy of Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News