Saudi Arabia Won't Cut Crude Output, Reaffirms Freeze Accord
- Kingdom doesn't trust other producers to cooperate with cuts
- Other producers may join agreement to freeze production
Oil's Slide: Do Prices Have More Room to Fall?
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Saudi Arabia said it won’t cut oil production because it doesn’t trust other countries to join in, insisting instead that high-cost producers ought to bear the burden of reducing the current surplus.
“We are not banking on cuts because” there is “less than trust” that “countries are going to deliver even if they promise,” Saudi Oil Minister Ali Al-Naimi said in Houston Tuesday. The market will eventually rebalance because high-cost producers will have to “lower costs, borrow or liquidate” to cope with the slump in oil prices, Al-Naimi said, adding that he doesn’t know when the current price rout will end.