OPEC to keep its production ceiling at 30 mln bpd-Oil price war in the offing?

27-Nov-14

Saudi oil minister has suggested that OPEC would keep its production ceiling at 30 mln bpd. The Saudi oil minister Ali Al-Naimi has been reported by telegraph.uk to have said on the sidelines ahead of Thursday's critical OPEC meeting in Vienna, "The market will stabilise itself eventually". His remarks were interpreted by the market as a signal that the cartel would maintain its production ceiling. This has led to declines in price of crude. Brent crude fell to US$77.30 per barrel, falling by 30% since June. Oil in US fell to US$74 per barrel. Iranian officials, traditionally seen as hawks within the cartel of mainly Middle East producers, also appeared to soften their position following an afternoon of closed door meetings with counterparts from Saudi Arabia and Kuwait.