Riyadh: Saudi Arabia, Opec’s biggest oil producer, on Monday said it was content with the cartel’s decision to maintain output despite a supply glut and plunging prices.
The Council of Ministers “expressed satisfaction at the decisions that reflected the cohesion and solidarity of the organisation”, the official Saudi Press Agency (SPA) said.
The cabinet was briefed on last Thursday’s meeting of the 12-member Organisation of Petroleum Exporting Countries (Opec) in Vienna, it said.
The cartel which pumps one-third of global oil decided to keep production at 30 million barrels a day, sending US oil prices down more than $4 in Friday opening trades after the meeting, a sell-off that continued when markets reopened on Monday.
OPEC’s poorer members including Venezuela had sought a production cut to protect their revenues.
SPA said the Saudi cabinet highlighted “that the kingdom pays attention to the stability of the international market, and that its policies are based on the short and long term economic interests of the kingdom”.
It added that “cooperation by Opec and non-OPEC producers is a joint responsibility” to achieve a stable market.
Analysts had said Riyadh was content to see American shale oil producers — and even some members of the cartel — suffer from low prices while it tries to hold on to market share in an increasingly competitive business.
Saudi Arabia is economically strong enough to withstand lower prices, the analysts said.
On Monday oil futures fell further, to their lowest levels in five years.
US benchmark West Texas Intermediate crude (WTI) for delivery in January hit $63.72 a barrel while Brent crude for January sank to $67.53.
Prices had been above $100 earlier this year.
