18 Dec 2014
Oil Market problem is temporary – Saudi Oil Minister
FXStreet (Mumbai) - Saudi Oil Minister Ali bin Ibrahim Al-Naimi squashed all hopes of production cuts that the Oil market problem is temporary and that the Saudi economy can endure temporary fluctuation.
The Oil minister blamed the global economic problem for the rout in oil prices. He further added that demand for Oil has slowed at a time when oil supplies have been increasing from high cost regions, which makes reducing production a difficult if not an impossible task for Saudi.
Meanwhile, the massive spending effort announced by Saudi Arabia yesterday has already reduced the probability of output cut. Finance Minister Ibrahim al-Assaf announced that the government plans to fund “massive” development projects next year, focusing on health care, education, social services and security.
The Oil minister blamed the global economic problem for the rout in oil prices. He further added that demand for Oil has slowed at a time when oil supplies have been increasing from high cost regions, which makes reducing production a difficult if not an impossible task for Saudi.
Meanwhile, the massive spending effort announced by Saudi Arabia yesterday has already reduced the probability of output cut. Finance Minister Ibrahim al-Assaf announced that the government plans to fund “massive” development projects next year, focusing on health care, education, social services and security.