Saudi Oil Minister Slams Conspiracy Theories About Low Oil Prices--Report
The Saudi oil minister, Ali al-Naimi, has reportedly slammed conspiracy theories about low oil prices. The Gulf countries are said to be blaming non-OPEC oil producing countries for the low price of the commodity.
Taking on analysts that suggest that the low oil prices are the result of a Saudi "plot," Ali al-Naimi has reportedly said that such reports are "baseless." According to a report by Yahoo! the minister made the statements at an oil summit in the United Arab Emirates.
Global oil prices have been falling consistently for the past few months. At the recently held meeting of the OPEC, member countries failed to come to an agreement to cut production in order to stop the commodity price from falling further. The Saudi oil Minister has reportedly said that the decision not to cut production is not politically motivated but based on pure economic considerations.
Two oil producing countries Russia and Iran are said to have been affected by the law oil prices. Shale and sand oil producers from North America are also said to be affected by the low commodity prices. The Gulf countries are reportedly blaming increased oil production from non-OPEC members for the glut in the market and the consequent fall in the oil prices.
Calling the increased oil production from non-OPEC countries "irresponsible" the UAE energy Minister, Suhail al-Mazrouei, blamed the "newcomers" for their "lack of cooperation" and "speculators' greed." He further said that the drop in oil prices is due to "misinformation."
The Saudi oil Minister reportedly predicted that oil production will come down in the future with only competitive producers remaining in the market. "High cost producers will not continue to increase production," Ali al-Naimi reportedly said.
Non-golf members of OPEC such as Nigeria and Venezuela are also said to have been affected by the low oil prices. The countries that have reserves in the form of sovereign wealth funds are said to be in a better position to withstand the low oil prices.
Qatar's energy Minister, Mohammed al-Sada, reportedly termed the low oil prices as a "temporary correction." The Minister was however concerned that prolonged low oil prices could lead to reduced investment in production capacity building to meet future demand.