Saudi Arabia: We won't cut production even if oil is $20

The Saudis have thrown down the gauntlet to more expensive producers.

by Rachel Savage

Anyone betting on oil prices recovering in 2015 might want to look away now. The price of a barrel of Brent Crude (the main global oil benchmark) fell back below $60 (£39) yesterday after Saudi Arabia’s oil minister said the kingdom wouldn’t be cutting production – even if black gold plunges to $20.

‘As a policy for Opec, and I convinced Opec of this… it is not in the interest of Opec producers to cut their production, whatever the price is,’ Ali al-Naimi said in an unusually forthright interview with the Middle East Economic Survey. ‘Whether it goes down to $20, $40, $50, $60, it is irrelevant.’

Brent Crude is now selling for around $60.45, having fallen by more than 45% this year since its peak in June.

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