Saudi Arabia and UAE Signal No Change Ahead of OPEC Meeting

OPEC leader Saudi Arabia and fellow member the United Arab Emirates signalled on Wednesday they were unlikely to push for a major change in oil output at the group’s meeting this week to prop up prices that have collapsed by a third since June.

Saudi Oil Minister Ali al-Naimi said he expected the oil market “to stabilise itself eventually” after talks with non-OPEC member Russia on Tuesday yielded no pledge from Moscow to tackle a global oil glut jointly.

OPEC’s meeting on Thursday will be one of its most crucial in recent years, with oil having tumbled to below $79 per barrel due to the U.S. shale boom and slower economic growth in China and Europe.

 
Core Gulf oil producer the UAE sided with Naimi, saying oil prices would soon stabilise, while ramping up pressure on non-OPEC producers.

“This is not a crisis that requires us to panic … we have seen (prices) way lower,” UAE Oil Minister Suhail bin Mohammed al-Mazroui told Reuters. “I think everyone needs to play a role in balancing the market, not OPEC unilaterally”.

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza