Al-Naimi Expects Oil Market to Balance and Prices to Stabilize
March 04, 2015
Saudi Arabian Oil Minister Ali al-Naimi said he expects the oil market will stabilized. In a speech to the German-Arab Friendship Association in Berlin today, Minister Al-Naimi said Saudi Arabia is committed to helping balance the oil market, but that it is a global issue. “Achieving market stability remains our goal. We will never be able to curb volatile oil market investment cycles, but perhaps we can work to moderate them for the benefit of all producers. It is vital that all producing countries – OPEC and non-OPEC – continue to focus on long-term common objectives of ensuring oil market stability and a sustainable future for both oil producers and consumers. Going forward, I hope and expect supply and demand to once again start to balance, and for prices to stabilize.
The minister dismissed criticism of the Kingdom’s role in the drop in oil prices. “During periods of rapid price movement, up or down, there is often a frenzy of commentary ascribing various bizarre theories and motives – about collusion or conspiracy – to OPEC and to major producers, most notably Saudi Arabia. With the recent price drop, OPEC and Saudi Arabia have yet again been maliciously – and unfairly – criticized for what is, in reality, a market reaction. Some speak of OPEC’s ’war on shale’, others claim ‘OPEC is dead.’ Theories abound. They are all wrong.” Minister Al-Naimi added that “going forward, I hope and expect supply and demand to balance and for prices to stabilize."