The oil minister of Saudi Arabia Ali Al-Naimi said on Monday that the kingdom will not cut its output, and is even ready to increase market share if new customers emerged to meet their demands. Al-Naimi said Saudi Arabia will maintain its market share of 9.7 million barrels per day, unless new demand emerged which then output will be increased further. Al-Naimi also negated rumors that Saudi Arabia is conspiring to take out rival producers with lower prices.
Over the last six months, crude oil prices have lost nearly 50%, which has rattled markets and unfolded many risks and potential crises with it. Russia is on the verge of a financial crisis, Venezuela’s risk of default has substantially increased, and some U.S. producers had to cut workers and decrease investment. "There is no effort against anyone in the international oil market, there are no conspiracies against other countries," he said.
On Sunday, Al-Naimi said the world’s largest producer will not alter its output to hike oil markets even if other non-OPEC producers did so, adding that the best way to deal with the current oil market is to “let the most efficient producers producer.”
These remarks strong indicate that Saudi Arabia, being the world’s largest exporter of oil, has no intentions to decrease its output despite lower oil prices, and is willing to go to many lengths to hold and expand its market share.
Al-Naimi also shrugged off the idea that the oil market would drive the Saudi government into budget deficit this year, adding that the state has no debt and is ready to borrow if needed. "The banks are loaded and we can borrow from them while maintaining cash reserves," he said.
Brent crude oil prices were last up 0.72%, but dropped below the $62-a-barrel mark. WTI crude oil was up 0.37% at $57.37 a barrel, as of 12:25 GMT.