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Gulf oil production will reduce not because can survive for cheaper oil to $20

Gulf countries have no intention to reduce oil production because they can withstand podeshevshannya oil to $20.

Organization of Petroleum Exporting Countries (OPEC) will not reduce production, even if oil prices will drop to $ 20 a barrel, said in an interview with Saudi Arabian Oil Minister Ali al-Nuyami.

“Wherever there were price reductions of production is not in the interest of OPEC producers, – he said. – If it drops to $20, $40, $50 or $60, it is irrelevant.”

The minister said that the world may never see oil at $ 100 a barrel. “If Saudi Arabia will lower production, prices will go up, and Russians, Brazilians and shale developers in the US take away my share (market – ed.),” – Said al-Nuyami.

According to estimates, budgets Gulf withstand prolonged period of falling prices, as the cost of production in the region of 4-5 per barrel. First, according to the minister, offshore projects suffer Brazil, West Africa and the Arctic. “Because sooner or later, no matter how much they stretched ultimately their financial possibilities force them to cut production,” – he predicted.

“We want to tell the world that the only country with a high efficiency oil deserve market share”, – concluded the oil minister of Saudi Arabia.

We note today oil prices demonstrate corrective growth during trading Tuesday after falling on Monday, according to the auction.

Thus, the cost of the February futures for North Sea Brent blend increased by 0.56% – to 60.67 dollars per barrel. The cost of the February futures for WTI light crude oil increased by 0.86% – to 56.12 dollars per barrel.

As previously reported, on the eve of al-Nuyami said that Saudi Arabia is ready to increase oil production if will be a new customer.

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