• 5 hours India, China, U.S., Complain Of Venezuelan Crude Oil Quality Issues
  • 10 hours Kurdish Kirkuk-Ceyhan Crude Oil Flows Plunge To 225,000 Bpd
  • 14 hours Russia, Saudis Team Up To Boost Fracking Tech
  • 20 hours Conflicting News Spurs Doubt On Aramco IPO
  • 21 hours Exxon Starts Production At New Refinery In Texas
  • 22 hours Iraq Asks BP To Redevelop Kirkuk Oil Fields
  • 2 days Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 2 days Oil Gains Spur Growth In Canada’s Oil Cities
  • 2 days China To Take 5% Of Rosneft’s Output In New Deal
  • 2 days UAE Oil Giant Seeks Partnership For Possible IPO
  • 2 days Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 2 days VW Fails To Secure Critical Commodity For EVs
  • 2 days Enbridge Pipeline Expansion Finally Approved
  • 2 days Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 2 days OPEC Oil Deal Compliance Falls To 86%
  • 3 days U.S. Oil Production To Increase in November As Rig Count Falls
  • 3 days Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 3 days Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 3 days EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 3 days Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 3 days Aramco Says No Plans To Shelve IPO
  • 5 days Trump Passes Iran Nuclear Deal Back to Congress
  • 6 days Texas Shutters More Coal-Fired Plants
  • 6 days Oil Trading Firm Expects Unprecedented U.S. Crude Exports
  • 6 days UK’s FCA Met With Aramco Prior To Proposing Listing Rule Change
  • 6 days Chevron Quits Australian Deepwater Oil Exploration
  • 6 days Europe Braces For End Of Iran Nuclear Deal
  • 6 days Renewable Energy Startup Powering Native American Protest Camp
  • 7 days Husky Energy Set To Restart Pipeline
  • 7 days Russia, Morocco Sign String Of Energy And Military Deals
  • 7 days Norway Looks To Cut Some Of Its Generous Tax Breaks For EVs
  • 7 days China Set To Continue Crude Oil Buying Spree, IEA Says
  • 7 days India Needs Help To Boost Oil Production
  • 7 days Shell Buys One Of Europe’s Largest EV Charging Networks
  • 7 days Oil Throwback: BP Is Bringing Back The Amoco Brand
  • 7 days Libyan Oil Output Covers 25% Of 2017 Budget Needs
  • 7 days District Judge Rules Dakota Access Can Continue Operating
  • 8 days Surprise Oil Inventory Build Shocks Markets
  • 8 days France’s Biggest Listed Bank To Stop Funding Shale, Oil Sands Projects
  • 8 days Syria’s Kurds Aim To Control Oil-Rich Areas
Alt Text

Why U.S. Crude Exports Are Booming

U.S. crude oil exports are…

Alt Text

China Takes Aim At The Petrodollar

In a potentially disrupting move…

Alt Text

Oil Prices Rise Amid Falling U.S. Rig Count

Oil prices inched higher on…

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

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:




Back to homepage


Leave a comment

Leave a comment




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