- 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
