Saudi Arabia “didn’t mean to hurt anybody” by letting the oil price crash

Posted on March 22, 2015

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From Reuters:

Saudi Arabia’s OPEC governor Mohammed al-Madi said on Sunday that he believed it would be difficult for oil to reach a price range of $100-120 per barrel again.

“$100-120 – I think it’s difficult to reach 120 another time…We understand that all countries need higher incomes…We want higher incomes, but we want higher incomes for us and future generations,” Madi told an energy conference in Riyadh. Brent crude is currently around $55 per barrel.

He also repeated that Saudi Arabia had no political motives in its oil policy.

“There isn’t any political dimension in what we do at the oil ministry – our vision is commercial and economic…We didn’t mean to hurt anybody, our vision is simply the following: the producers which have low costs have to have the priority to produce, but those who have high costs have to wait for their turn to produce,” he said.

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Posted in: Economy