• Says the market is passing through the problem
  • Several factors combined behind oil market problem
  • Global economy problem largely behind market problem
  • Increased oil supply from high cost regions affect market
  • Demand for oil slowed more than expected
  • Saudi output stable while non-OPEC output rises
  • Makes it difficult if not impossible for OPEC or Saudi to cut production
  • Saudi economy can endure temporary fluctuation
  • Saudi economy is solid and has large financial reserves

Saudi oil minister Ali bin Ibrahim Al-Naimi stamping all over any expectations for production cuts. I’m not sure some of his OPEC colleagues who are fiscally underwater with the current price would agree.

He’s made a good point though, why should OPEC cut just because non-OPEC production has risen? That’s what makes a market.

Oil is staging a bounce of sorts despite the bearish comments above.

Brent crude oil H4 chart 18 12 2014

Brent crude oil H4 chart 18 12 2014