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Page added on November 29, 2014

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Kuwait urges cooperation from non-OPEC producers

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Kuwait Oil Minister Ali Al-Omair urged non-OPEC crude producers to cooperate to help stabilize the oil market and prevent sharp fluctuations in prices, KUNA news agency said.
The minister called on producers from outside OPEC to “cooperate with the Organization of Petroleum Exporting Countries to guarantee stability of the market and prevent major swings in oil prices.”
He was speaking from Vienna, where on Thursday the 12-member OPEC decided to keep its production ceiling unchanged sending oil prices crashing.
Omair insisted the OPEC decision was “right” and the “best solution at the present time,” adding it was based on market information.
He said OPEC members agreed to hold their next meeting in June and decided against convening an emergency session unless necessary.
Global oil prices plunged Friday to new multi-year lows after the OPEC the decision despite an oversupplied market.
US benchmark West Texas Intermediate for delivery in January closed at $66.15 a barrel on the New York Mercantile Exchange, down $7.54 from the closing price Wednesday.
It was the lowest WTI close since September 2009.
Brent oil for January delivery sank below $70 for the first time in four and a half years, to $69.78 a barrel. Brent settled at $70.15 a barrel, down $2.43 from Thursday’s close.
Also on Saturday, Russian First Deputy Prime Minister Igor Shuvalov said OPEC’s decision to abstain from cuts in oil production has forced Russia not to proceed with its own cuts.
Oil prices have dived after the OPEC’s decision, reaching a new four-year low. North Sea Brent fell by $2.43, or 3.3 percent on the day, to $70.15 on Friday.
Russia is one of the world’s leading oil producers, with oil and natural gas sales representing half of its budget, which is balanced when oil is at $100. The fall in prices has hit hard Russia’s economy, already teetering on the brink of recession.
“The experts say that one of the main reasons behind the falling oil prices is that some Arab oil producing countries… are squeezing out shale oil from the international market,” Shuvalov told state-run TV Rossiya-1, according to TASS.
“If such actions are happening with the aim to fix or confirm one’s position on the market, we should not do anything at the moment to scale down our positions.”
Shale oil boom in the US, which is producing oil at the peak since 1986, has drastically changed the global oil market landscape and dampened prices.
Just two days prior to the OPEC meeting in Vienna, Russia sent its delegation, led by Igor Sechin, a long standing ally of President Vladimir Putin and head of Russia’s top oil producer Rosneft, to the Austrian capital for meetings with some OPEC members.
Shuvalov said, however, that Russia did not ask OPEC for production cuts

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5 Comments on "Kuwait urges cooperation from non-OPEC producers"

  1. ghung on Sat, 29th Nov 2014 5:46 pm 

    One trick ponies…. must be tough.

  2. Makati1 on Sat, 29th Nov 2014 7:23 pm 

    OPEC asked for this and now they can stew in their own pot. Building an economy on oil profits has put them in a corner. The OPEC countries are mostly some form of dictatorship supported by large money transfers to their citizens, paid for by oil.

    Now that Russia and the US are producing a lot more oil, OPEC’s controls have slipped. Russia is in the same situation, kinda. Russia’s economy is not as reliant on oil profits and can adjust quicker. The US is hanging on by printing money. What an interesting year 2015 is going to be!

  3. Kenz300 on Sun, 30th Nov 2014 10:15 am 

    KSA wants to drive the price down to slow the competition from shale, tar sands and deep water projects. These are all expensive production projects that need higher oil prices or at least the expectation of higher oil prices in the future to move forward.

    The oil patch is in a panic….. risky projects will be cancelled, highly leveraged companies will go broke, and the increase in production will slow.

    Major fields around the world are in decline and major exporting countries are using more oil for internal consumption.

    Yes there is a supply, demand imbalance for now,

    Enjoy the lower oil prices while they last and use this time (and money saved) to transition to safer and cleaner alternatives.

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  4. louis wu on Sun, 30th Nov 2014 2:50 pm 

    Why do so many people believe that KSA actually wants to drive the price down?What has happened to all that crowing from the USA business media about Saudi America and how our oil pathc miracle was going to lower world oil prices thanks to Yankee ingenuity and American exceptionalism?Oil prices are going down so why isn’t anyone still bragging about the American oil miracle?We won right?With the price being down KSA is losing a lot of revenue they need to keep their masses as calm as possible.They probably can’t afford to lose even more revenue by actively cutting production.If they cut production they would probably be cutting their own throats.

  5. Kenz300 on Mon, 1st Dec 2014 9:28 am 

    Climate Change is a real threat and growing…….

    It is time to move away from fossil fuels and transition to safer and cleaner alternative energy sources.

    Oil has a monopoly on transportation fuels…that is risky for the planet and the worlds economy.

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