Gulf Oil Exporters Blame Non-OPEC Producers for Glut
Saudi Oil Minister Dismisses Suggestions That OPEC Decision Was Targeted at Countries
By Summer Said, Sarah Kent and Asa Fitch
Dec. 21, 2014 10:28 a.m. ET
ABU DHABI—Gulf oil officials on Sunday defended OPEC’s decision last month to keep its production ceiling intact, blaming producers outside of the group for the glut of oil on the market that has depressed prices.
Speaking at an energy conference in Abu Dhabi, Saudi Oil Minister Ali al-Naimi blamed a lack of coordination from producers outside the Organization of the Petroleum Exporting Countries—along with speculators and misleading information—for the slump.
On Nov. 27, OPEC said it was keeping its production ceiling unchanged, sending crude prices into a tailspin. OPEC officials since have said the move was aimed at protecting the group’s market share, saying a reduction in output to boost prices could have allowed non-OPEC producers to sweep in and take its customers.
OPEC officials have singled out American shale producers as a particular problem. U.S. oil production has soared as a result of the shale boom, reducing OPEC exports to the U.S.
Non-OPEC producers “will realize that it is in their interests to cooperate to ensure high prices for everyone,” Mr. Naimi said.
He noted that articles and analyses saying that the kingdom’s policies are aimed against one country or another are incorrect. Officials in Iran, Venezuela and Russia have suggested Saudi Arabia was working with the West to depress prices and weaken their governments.
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But when asked by reporters later in the day whether OPEC would cut output if non-OPEC producers offered to reduce their own production, Mr. Naimi said, “It is too late.” If other, non-OPEC producers want to cut, they are welcome to, he added.
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That's priceless. Maybe later today we'll get another headline "Gulf Oil Exporters offer thanks to non-OPEC producers for having supported OPEC for soooo many years." What?! Look, if the NOP's get blamed for the glut then they get the credit for 7 years of high prices too.