Saudi OPEC Representative Says Oil Price Won’t Return to Record Levels

The oil price is unlikely to reach again the record levels seen in the past few years, according to Saudi Arabia’s representative at Opec.

Mohammed al-Madi, Saudi’s Opec governor, told an energy conference that hitting the $100 to $120-a-barrel mark again would be “difficult”.

Mr Madi also told the meeting in Riyadh that that his country’s oil policy had no “political dimension”.

Saudi is Opec’s biggest producer and the dominant voice with the group.

On Friday, Brent crude closed at $55.2 a barrel, while US oil was $46.5.

Asked if the price could return to previous highs, Mr Madi said: “$100-$120 – I think it’s difficult to reach $120 another time.”

He also rejected suggestions that Saudi Arabia was letting the oil price fall for political and competitive reasons. Iran has criticised Saudi Arabia’s refusal to support the oil price by cutting production.

Meanwhile, some analysts have speculated that Saudi Arabia’s willingness to see the price slump is because it will hurt America’s booming – but high cost – shale gas industry.

via BBC

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.

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