Oil
prices fell after Saudi Arabia said it was producing the most crude oil since
July. Brent for May delivery fell to $54.64 a barrel on London’s ICE Futures
exchange. On Sunday, Saudi Oil Minister Ali al-Niami said the Saudis were
currently producing around 10 million barrels of crude a day, the country’s highest
output since July, when oil prices started collapsing.
Niami
said there was no conspiracy behind OPEC’s decision last fall to maintain its
output target. The group could have lost market share if it had cut its
production, he added. (The Wall Street Journal, 23 March).
4 comments:
Saudi can easily sell oil for $15 a barrel.
And how did you come to that conclusion when oil accounts for almost all of Saudi Arabia's revenues?
I think this is Saudi Arabia's way of responding to Iran's growing role in Yemen, oil economics notwithstanding.
The timing of Saudi announcement supports your thesis, a day after Taiz was overrun by the Huthis.
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