Just what the Saudis will do in OPEC is up in the air. According to the Agence France Presse article running in Asharq Alawsat, the Saudi government is not eager to cut oil production in order to support prices, a sentiment shared by other Arab Gulf States. Other OPEC states are concerned about the 20% drop in prices. According to the piece, the Gulf Arabs would be content with a price of $80/bbl, while others are looking at the range of $100-$120/bbl. Interesting.

Saudi Arabia Sets Up Clash at OPEC Meeting

VIENNA (AFP) — Saudi Arabia expressed satisfaction with recent steep falls in oil prices on Tuesday and appeared in no mood to approve a cut in output by the OPEC group despite fears among some members of oversupply.

“We have worked very hard since June’s meeting to bring prices to where they are now. I think everything is in balance,” said Saudi Arabia’s Oil Minister Ali al-Nuaimi ahead of an OPEC meeting here later in the day.

The Saudi kingdom, the world’s biggest crude producer and de facto leader of the Organisation of Petroleum Exporting Countries, has come under fierce pressure from the United States and other allies over record crude prices.

The country agreed in May and June to pump an extra 500,000 barrels per day (bpd) to help bring down the runaway oil market, which peaked at 147 dollars a barrel in July but has now fallen back to about 105 dollars.

The Saudi position sets up a clash with other OPEC members at the meeting on Tuesday, where the 13-nation organisation is set to decide on its new production policy.
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