Saudi Arabia's oil minister, Ali Naimi, said today that Opec members tried to reach a deal with some non-Opec producers before last month's Opec meeting where ministers held the production ceiling at 30mn b/d, since when oil prices have fallen sharply.
"Opec countries sought during the past month, as happened in previous times, for the co-operation of other producing countries outside the organisation, but these efforts have not been successful," Naimi said in an interview with state-owned news agency SPA.
Naimi met with high-level Russian and Mexican delegations in Vienna before the Opec meeting along with fellow Opec member Venezuela, but they agreed to nothing more than another meeting in early 2015. Mexico has in the past worked with Opec to restore oil prices. Russia and some other non-Opec producers have offered tokens of support.
Naimi's comments may reflect serious attempts to work with non-Opec producers or may be another justification for Saudi Arabia's refusal to contemplate a cut in the ceiling. Saudi Arabia has said within Opec that it would not cut its own output unless others did so too.
But Naimi said today that neither Saudi Arabia nor Opec should cut their output. "In a situation like this, it is difficult, if not impossible, that the kingdom or Opec would carry out any action that may result in a reduction of its share in the market and an increase of others' shares at a time in which it is difficult to control prices," he said.
The minister denied that Saudi Arabia's oil policy is linked to political objectives.
Saudi Arabia is financially strong enough to ride out a period of low prices, Naimi said, adding he is "optimistic about the future", that economic growth will strengthen, particularly in developing countries, pulling up oil demand growth.
ts/wj
