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Monday, March 23, 2015

Brent Falls as Saudi Output Rises

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).
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4 comments:

  1. AnonymousMarch 23, 2015 at 3:12 PM

    Saudi can easily sell oil for $15 a barrel.

    ReplyDelete
    Replies
    1. UnknownMarch 23, 2015 at 10:14 PM

      And how did you come to that conclusion when oil accounts for almost all of Saudi Arabia's revenues?

      Delete
  2. UnknownMarch 23, 2015 at 10:15 PM

    I think this is Saudi Arabia's way of responding to Iran's growing role in Yemen, oil economics notwithstanding.

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    Replies
    1. Nader UskowiMarch 23, 2015 at 10:58 PM

      The timing of Saudi announcement supports your thesis, a day after Taiz was overrun by the Huthis.

      Delete