Oil Prices 2017: OPEC Meeting Should Accelerate Return To Balanced Market, Saudi Energy Minister Says
The following is an excerpt from LYDIA O'NEAL | November 28, 2016 | ibtimes.com |
Saudi Arabian energy minister Khalid al-Falih offered contradictory statements on Sunday as to whether his country would join the Organization of Petroleum Exporting Countries’ (OPEC) push to cut production of the commodity at its Wednesday meeting. His remarks sent oil prices into a zigzag early Monday.
The oil market will return to its previous higher prices on its own next year without a cap on the output of OPEC’s 14 member countries, Falih told reporters at the headquarters of petroleum giant Saudi Aramco in the city of Dhahran, according to Reuters. Nonetheless, he added that an intervention should speed up that process.
"We expect the level of demand to be encouraging in 2017, and the market will reach balance in 2017 even if there is no intervention by OPEC. But OPEC intervention aims to expedite this balance and the market recovery at a faster pace," he said. "I don't think that we have one path only in OPEC meetings, which is cutting production - I think maintaining production at current levels is justifiable, taking into consideration the recovery of consumption and growth in developing markets and the United States."
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