Saudi Arabia will not cut oil production to boost depressed prices, a reversal in the Kingdom’s usual policy of moderating supply to control prices and sending a strong message about the Organization of the Petroleum Exporting Countries’ (OPEC) strategy for dealing with a slumped oil market.
Saudi Minister of Petroleum and Mineral Resources Ali al-Naimi told reporters on Sunday that even if non-OPEC countries cut production, Saudi Arabia will not follow them, Reuters reports. Other ministers, including from Kuwait and Iraq, repeated the Saudi minister’s insistence on retaining steady production levels.
A boom in U.S. shale gas production has flooded the global oil market and sent gas prices tanking.
The Wall Street Journal reports that Saudi Arabia’s refusal to cut oil production has led to speculation that the world’s top petroleum exporter could be seeking to knock gas prices even lower, testing U.S. shale gas producers resolve to keep pumping…
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