Saudi Arabia has indicated it will not push for output cuts to help push up oil prices, as Opec oil producers prepare for their meeting on Thursday.
The oil market will “stabilise itself eventually”, said Saudi Oil Minister Ali al-Naimi.
Saudi Arabia is the largest producer of the 12 members of the Organization of the Petroleum Exporting Countries (Opec).
The oil cartel is split over how to react to the sharp slump in oil prices.
The price of Brent crude has plunged 30% since June, triggered by a sharp rise in US shale oil output and weakening global demand.
There is speculation that on Thursday Opec could announce its first cut in oil production since 2009 in an attempt to support the oil price.
Among the Opec members, Venezuela and Iraq have called for output cuts.
However, fellow Opec member United Arab Emirates’s (UAE) Oil Minister Suhail bin Mohammed al-Mazroui appeared to side with Saudi Arabia, indicating it would not push for a cut in production, saying “the market will fix itself ultimately”.
“We are not going to panic, this is not the first time, this is not a crisis that requires us to panic … we have seen [prices] way lower. We are not interested in the short fixes because we know they will not last,” Mr al-Mazroui told Reuters.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.