OPEC, Oil Companies Clash At Davos Over Price Collapse
He expected prices to stay low for 12-18 months but then start a gradual recovery as U.S. shale oil production began falling.
Sticking To Guns
But both OPEC and Saudi Arabia, the group's largest producer, stuck to their guns.
"If we had cut in November we would have to cut again and again as non-OPEC would be increasing production," OPEC Secretary General Abdullah al-Badri said in Davos.
"Everyone tells us to cut. But I want to ask you, do we produce at higher cost or lower costs? Let's produce the lower cost oil first and then produce the higher cost," Badri said.
"Prices will rebound. I saw this 3-4 times in my life."
Al-Badri said the policy was not directed at Russia, Iran or the United States.
State-run oil company Saudi Aramco Chief Executive Khalid al-Falih also appeared unfazed, saying that although it could take some time, the oil market will eventually balance itself.
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