Saudi Oil Minister Ali al-Naimi told reporters on Sunday that OPEC will not decrease production below the current level of 30 million barrels per day. And to those countries outside of OPEC that want to decrease output, he was quite direct: go ahead.
“If they want to cut production they are welcome: We are not going to cut, certainly Saudi Arabia is not going to cut.”
According to Reuters, al-Naimi did not credit the current slump in oil prices to increased U.S. production or decreased global demand. Instead, “He blamed the fall in prices to half their levels of six months ago on speculators and what he called a lack of cooperation from non-OPEC producers.”
Read more about OPEC and global oil prices here.
T. Boone Pickens appeared with Neil Cavuto on Fox Business Channel to discuss oil prices. Boone said that prices have fallen because “demand is half what we had predicted a year ago” yet “inventories are still building.”
He said we should still build the Keystone Pipeline because oil prices are likely to return to the $80 to $100 range in the next 12 to 18 months.
Pickens said the Saudis “are not going to cut output” to raise prices because of their huge cash reserves but “it is killing other OPEC members like Iran, Russia, Nigeria and Venezuela” and “they are making new enemies hourly.”
CNN’s Richard Quest speaks to T. Boone Pickens about the behind the scenes politics behind the dropping price of oil.