Saudi Cabinet Makes Tentative Pronouncements on Oil Price Cooperation

Saudi Cabinet Makes Tentative Pronouncements on Oil Price Cooperation

Saudi Arabia’s cabinet said it was ready to cooperate with OPEC and non-OPEC countries to achieve market stability, reported Reuters.

“The council (of ministers) … stressed the kingdom’s role in (achieving) the stability of the oil market and its continuous readiness and efforts to cooperate with all OPEC and non-OPEC countries to maintain the stability of the market and prices,” the cabinet said.

Oil prices jumped $1 a barrel after the comments.

Algeria’s prime minister Abdelmalek Sellal, in a speech at the Gas Exporting Countries Forum (GECF) Summit in Tehran, urged leading oil market players to control output levels.

“The main players in the petroleum market must certainly reach an agreement about the levels of production,” he said.

“If the petroleum market is not controlled, it will witness strong volatility for prices,” he added, warning that this would hurt the “interests of producers and consumers and the whole petroleum industry”.

According to Trade Arabia the weekly cabinet meeting statement typically mentions energy policy only in the context of a major speech by the country’s Oil Minister Ali Naimi, paraphrasing in effect a speech Al-Naimi gave in Bahrain last week.

A previous cabinet meeting statement in April had also affirmed Riyadh’s willingness to “participate in restoring market stability”, if other major oil producers also did so too.


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