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Saudi Arabia Says $30 Oil Is ‘Irrational’

Posted By Craig Erlam On In Newsfeed | No Comments

Saudi Arabia has described the collapse in oil prices to below $30 as “irrational” and expects the market to recover in 2016 even as the country continues to keep production high.

Khalid al-Falih, chairman of state oil company Saudi Aramco, told the World Economic Forum in Davosthat current prices would not last, with many smaller producers facing financial difficulties.

“The market has overshot on the low side and it is inevitable that it will start turning up,” said Mr Falih, predicting higher prices by the end of the year.

He reiterated that Saudi Arabia, the world’s biggest oil exporter, would not cut supplies unilaterally or make way for rival producers.

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Craig Erlam

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Senior Market Analyst, UK & EMEA at OANDA [6]
Based in London, Craig Erlam joined OANDA in 2015 as a market analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and SKY News. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.
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