Oil price falls as Saudi Arabia pushes OPEC cartel to hold production levels

Oil price falls as Saudi Arabia pushes OPEC cartel to hold production levels

Saudi Arabia has bulldozed fellow members of the OPEC oil cartel to hold production levels at the current level, ensuring lower crude and petrol prices should continue for the foreseeable future, The Guardian reported.

The world's most powerful oil-producing country is determined to keep down the value of oil in a bid to reassert the dominance of Opec against its new rivals, the shale companies in North America.

Saudi Arabia's oil minister, Ali al-Naimi, insisted OPEC's latest ministerial meeting in Vienna on Friday had been amicable, despite fears among some cartel members that a persistent oversupply of crude could push prices even lower.

The price of the key Brent blend crude fell $1.62 to $62 a barrel after the meeting and compares with the $115 seen 12 months ago before traders panicked about the scale of US output growth and faltering demand.

In fact, prices had been steadily recovering this year from a $45 low in January but continued gloom that they could remain low this year has led to major spending cuts by the oil industry in Aberdeen and other energy hubs.

Meanwhile, the price of unleaded petrol for cars has fallen to about 113p a litre in the UK compared with 130p a year ago. Diesel prices are down from about 135p a litre to 118p, according to the AA motoring organisation. Lower transport costs has helped many British industries and reduced the country's inflation rate.

OPEC met last November and turned its back on oil producers' usual reaction to lower prices, which is to rein in their own output. Saudi Arabia and some key cartel allies were convinced that OPEC's interests were best served by keeping prices low, holding on to customers and trying to shut down US shale rivals, which face higher costs.

The strategy has continued and the Saudis insisted everyone was happy. "You'll be surprised at how amicable the meeting was," Naimi said as he left OPEC's headquarters in Vienna.

He confirmed the group had agreed to stick to "the same ceiling", even though some members of the oil cartel have been cheating on their quotas. Official production is 1m barrels higher than the 31m-barrel-a-day official output target.

"The market is in a transition phase, it is not stable," the United Arab Emirates' oil minister, Suhail bin Mohammed al-Mazroui, told Reuters before the meeting. "We are optimistic about what happened in the first quarter in terms of [the price] correction."

Low oil prices do not worry Saudi Arabia, which has $300bn (£200bn) in its sovereign wealth funds, but are devastating for other OPEC members such as Iran, Venezuela and Nigeria, whose public finances are much weaker.

Budgets of exporter countries have taken a hit while $100bn of spending on new global oil projects has been put on hold or cut by the world's largest energy groups - some of this in the UK's North Sea oilfields.

Oil ministers from Iraq, Venezuela and Angola said this week that a price of $75 to $80 a barrel would be their preferred level.

But they will have to hope that global demand continues to improve to absorb the supply from Iran if a deal with the west over its nuclear programme is finalised later this month, which may end western sanctions on its oil exports.

Kazakhstan continues importing more grain, legumes from Turkey
Kazakhstan continues importing more grain, legumes from Turkey
Number of migrant workers from Turkey in Georgia edges up
Number of migrant workers from Turkey in Georgia edges up
Kazakh import of steel from Turkey down amid COVID-19 global pandemic
Kazakh import of steel from Turkey down amid COVID-19 global pandemic
Loading Bars
Latest
Net profits of Georgian commercial banks increase
Azerbaijani FM meets with deputy chairman of Georgian parliament (PHOTO)
Azerbaijani Air Forces conduct combat-training flights (PHOTO/VIDEO)
Timeframe for iron ore exploration in Azerbaijan's Dashkasan revealed
Azerbaijani Ministry of Finance to place state short-term bonds
Georgian Kula company doubles production of dried fruits
Georgia's exports of fruits, nuts soar
Georgia reveals volume of fertilizers exported to Azerbaijan
Azerbaijani minister: Dashkesan iron ore deposit promises great prospects
Azerbaijan plans to export agricultural products to Arab countries soon
Asian Development Bank discloses amount of funds allocated to Azerbaijan
Kazakhstan continues importing more grain, legumes from Turkey
Azerbaijan's State Customs Committee to launch new services for foreign trade participants
Uzbekistan expanding geography of natural uranium exports
Number of migrant workers from Turkey in Georgia edges up
Kazakh political analyst: Azerbaijan - plays important role in Turkic-speaking world
Russia reports over 6,500 new coronavirus cases
Azerbaijan increases import of cars from Georgia
Kazakh import of steel from Turkey down amid COVID-19 global pandemic
Azerbaijani State Customs Committee presents new e-commerce project
Iran provides funding for industrial, mineral projects
Georgia sees increase in export of blueberries
Georgia reveals volume of hazelnuts exported to Azerbaijan
Fitch forecasts moderate dividends from Kazakhstan's KazMunayGas' equity affiliates
Turkmenistan’s Turkmennebit to buy electrical equipment via tender
Diesel imports increases in Georgia
Financing for Uzbek solar power plant construction approved
Azerbaijan's MFA comments on provocative activities of Pashinyan
External debt up in Uzbekistan
Turkmenistan receives Russia's test system for revealing COVID-19
Azerbaijan's Bank BTB kicks off cooperation with Universal Payment Transfer system
The 7th International womEncourage virtual meeting launched with Gold Sponsorship and Digital Partnership of Azercell
Kazakhstan's oil extracting company opens tender to buy accumulators
Cotton harvesting starts in Azerbaijan's Beylagan district
Most popular goods imported to Uzbekistan revealed
Cargo traffic via Turkish Erzurum Airport decreases
Iran to tackle tax evasion
France reports over 1,000 people in ICU due to coronavirus
Azerbaijan, Turkey, Kazakhstan - key players in Turkic-speaking alliance
Iran looks to launch new freeway from Tehran to Karaj
CNG based vehicles could reduce fuel prices in Iran
United to provide COVID-19 tests to customers on San Francisco-Hawaii flights
CSTO resources cannot be used in territorial conflicts - Kazakh expert
Kazakhstan. Spain trade down twofold amid COVID-19
Shekel loses sharply on new lockdown restrictions
Iran hotel construction surges by 70 percent over 7 years
Signs COVID cases rising in Sweden again 'worrying' says PM Lofven
Iran`s Rouhani attends inauguration of several projects via video conference
Azerbaijani minister: Issuance of AzerGold's bonds - one of crucial events in 2020 for capital market (PHOTO)
Foreign Ministry discloses details of meeting of Azerbaijani, Georgian FMs (PHOTO)
Number of Kazakh cizitens sent back from Baku port during COVID-19 revealed
Azerbaijan reveals 133 more COVID-19 recoveries
Azerbaijan expands trade relations with Turkey, Russia during quarantine
Russia increases volume of livestock exports to Turkmenistan
Contract on methanol production in Iran signed
PM: Georgia still remains green state status and safe destination for tourists
LUKOIL-Azerbaijan opens tender on repair work
Bahar Azadi gold coin price still rising in Iran
Death toll from coronavirus pandemic exceeds 25,000 in Iran
Central Bank of Azerbaijan discloses amount of foreign currency bought by local banks
Construction of new oil refinery in Iran starts
Major repairs of Dovletabat-Deryalyk gas pipeline underway in Turkmenistan
Harley books $75 million in fresh restructuring costs, discontinues India operations
President Ilham Aliyev: There is a very high-level partnership between the European Union and Azerbaijan
Baku Stock Exchange holds meeting on issuance of AzerGold's bonds (PHOTO)
Azerbaijan’s Baku International Sea Trade Port discloses total cargo turnover this year
Iran discloses its exports via Jolfa customs
Azerbaijani expert in tourism sector talks about discounts on air tickets
Iran, Malaysia hold talks on preferential trade
FM: Azerbaijan's support for Georgia's position at UN General Assembly essential for us
Mikhail Barkan: Azerbaijan - one of most tolerant countries in world
LafargeHolcim Signs Net Zero Pledge with Science-Based Targets
Turkmen Akymly-Ugur service company announces production volumes
Turkmen service company plans to expand its export geography
Geostat reveals volume of vegetables exported by Georgia to Azerbaijan
SOFAZ expects no changes in its foreign currency portfolio
Azerbaijan unveils amount of loans issued to farmers
Range of products made in Azerbaijan's Nakhchivan expanding
Uzbekistan eyes to integrate into global economic, transport and transit corridors
Azerbaijani FM meets with Georgian counterpart (PHOTO)
Construction of large grain warehouse in Iran to be completed soon
Precious metal prices in Azerbaijan drop
Georgia reduces imports of electricity from Azerbaijan
Iran-Najaf flights resume for special passengers
Armenian intelligence network exposed - SOCIAL NETWORKS - PHOTO FACTS
UAE, Israel discuss energy, infrastructure cooperation
Iran declares trade turnover with EU member states
German industry's export expectations up significantly
EAEU countries increase fruit exports to Turkmenistan
Azerbaijani oil prices show climb
Pakistani Ambassador: Azerbaijan ably steered NAM in difficult times, provided leadership for developing countries
46-year-old enters Baku Higher Oil School
Moscow-Baku flights resumed (PHOTO)
Georgia reports 259 new COVID-19 cases
Uzbekistan increases cement production
Uzbekistan leads in foreign direct investment sector
Volume of currency sold at NIMA exchange rate in Iran climbs
Overhaul of Azerbaijani ‘Rasul Rza' dry-cargo ship completed (PHOTO)
Azerbaijani Cabinet of Ministers discusses budget-related issues (PHOTO)
Georgia increases import of tea from Azerbaijan
All news