Quote:
Originally Posted by chemgear
http://www.bloomberg.com/news/2014-1...versupply.html
Saudi Arabia and the United Arab Emirates reiterated pledges to keep pumping the same amount of crude, blaming non-OPEC producers for the glut of oil that’s driven prices to the lowest in five years.
Suppliers from outside the Organization of Petroleum Exporting Countries should cut “irresponsible” output, U.A.E. Energy Minister Suhail Al Mazrouei said in Abu Dhabi yesterday. Even if non-OPEC producers were to offer cuts, OPEC probably wouldn’t follow suit, Saudi Oil Minister Ali Al-Naimi said. The two countries account for about 40 percent of OPEC supply.
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No surprise here. The gulf oil states have some of the cheapest oil to produce and these countries have hundreds of billions of dollars in cash reserves. They'll simply wait it out while other oil producing counties collapse (Russia) and cut back production.