The Minister of Petroleum and Mineral Resources Eng. Ali bin Ibrahim Al-Naimi stressed that the Organization of Arab Petroleum Exporting Countries (OAPEC) aims to preserve the stability of international oil prices.
In a statement to the Saudi Press Agency (SPA) following the conclusion of OAPEC’s conference in Cairo today, Al-Naimi pointed out that price fluctuations affect all parties, therefore the Organization seeks to promote stable and moderate prices.
Al-Naimi noted that that the reduction of the Saudi oil output ceiling will have no effect on contracts with companies.
Al-Naimi said that the Saudi production ceiling was raised above one million barrels per day five months ago. “Now we are reducing our output to limit price decreases. The effect of the reduction will be apparent only after three months or over. We will then return to the ordinary output volume of 8,078,000 barrels per day, the agreed quota,” he said.
Al-Naimi said OPEC members produce only 40 percent of the world oil production, while non-OPEC states produce 60 percent of the total world oil production. “This means that OPEC cannot control world oil prices or output,” he said, adding: “We try as far as possible to coordinate our efforts with non-OPEC countries to stabilize markets.”
Source: SPA
