Saudi Oil Minister: Ready to Raise Output If New Clients Emerge
DUBAI, Dec 22 (Reuters) – Saudi Arabia is prepared to increase its oil output and claim a bigger market share to meet the demands of any new customers, Monday's edition of the Saudi-owned al-Hayat newspaper quoted the kingdom's oil minister as saying.
Asked if Saudi Arabia wanted to maintain a market share of 9.7 million barrels per day, Ali al-Naimi told the newspaper: "Yes, unless a new client comes along and then we may increase it."
The remark was one of the strongest signals yet that the world's top oil exporter has no intention of cutting output in the face of sliding oil prices, and is instead willing to use its low cost of production to win market share from non-OPEC competitors which it blames for the price collapse.
At an Arab oil producers' conference in Abu Dhabi on Sunday, Naimi said Saudi Arabia would not cut output to prop up oil markets even if non-OPEC nations did so, and that the best way to address conditions in the oil market was to "let the most efficient producers produce".
In the interview published on Monday, Naimi said: "Based on the analysis we have done, we will not cut output at OPEC."
He also denied media reports that he had debated oil policy with his Russian counterpart Alexander Novak at a meeting on the sidelines of the late November OPEC conference in Vienna.
He recalled that the head of Russian state oil firm Rosneft Igor Sechin had spoken for 30 minutes on the oil industry in his country and concluded by saying: "We cannot cut anything because our wells are old and if we reduced their output they will not produce again."
Naimi said he ended the meeting when Novak confirmed that his country was not willing to cut output. "I did not ask him any question and I don't know who reported this talk," al-Hayat quoted Naimi as saying.
The minister also dismissed the idea that lower oil prices could result in a Saudi budget deficit this year, saying the kingdom currently had no debt and was ready to borrow if necessary.
"The banks are loaded and we can borrow from them while maintaining cash reserves," he said.
Asked if Gulf Arab oil producers were in a position to put up with the lower oil prices for two or three years if necessary, he said they could.
(Reporting by Sami Aboudi; Editing by Andrew Torchia)
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Weatherford CEO's Rebound Plan Relies On Getting Smaller
- Iran Says Oil Market Is Too Tight For US Zero Exports Target
- China's Squeezed 'Teapots' Eye Petchem Path To Riches
- Baker Hughes: US Drillers Add Oil Rigs For Second Week In Three
- Venezuela Hands China More Oil Presence, But No Mention Of New Funds
- ExxonMobil Racks Up Discoveries in Guyana Block Eyed by Chevron
- Oil Market Sentiment Has Improved Significantly
- EU, US Eye Collaboration on Nuclear Materials
- USA Driving Activity to Increase to All-Time Highs
- EU Electricity Export to Ukraine Up 94 Percent in Two Years
- China Coal Output Falls for First Time since Government Ordered More
- TC Energy to Sell Prince Rupert Gas Pipeline Project to First Nation
- BP Pulse Buys One of Europe's Largest Truck Stops
- UK CCUS Plans Outdated: Think Tank
- I Squared Eyes Full Ownership of Europe Gas Storage Firm
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- EIA Drops 2024 Henry Hub Gas Price Forecast
- EIA and Standard Chartered Offer Up Latest Oil Price Predictions
- Red Sea Region Sees Another Watershed Incident
- Chevron Oil Project in Kazakhstan to Cost $48.5B
- OPEC Voices Encouragement after IEA Affirms Support for Oil Security
- Biden Govt Bares Strategy for Freight Charging, Hydrogen Fueling Infra
- Ukraine Hits Third Russian Refinery In Escalating Drone Strikes
- Rystad Looks at the Buzz Around White Hydrogen
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Is Peak Oil Demand Close?
- Vessel Sinks in Red Sea After Missile Strike
- JP Morgan, Standard Chartered Reveal Latest Oil Price Forecasts
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Rystad Forecasts Net Production of Top Permian Producers in 2024
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension