Saudi Arabia’s oil output levels will be a topic of discussion at an OPEC meeting this week, with analysts saying that the world’s biggest producer is content with keeping prices low to the detriment of US shale and other oil producers.
The Organisation of the Petroleum Exporting Countries (OPEC) is set to meet in Vienna, on the back of the knowledge that crude oil has fallen by one third in value since June to $80 a barrel.
Saudi Oil Minister Ali al-Naimi has yet to reveal his country’s stance on the matter, but commentators believe the Kingdom is in a financial position to keep output high and cost per barrel lower than has been seen for four years.
Rise in shale output is itself another factor in the dropping price of oil, as is lowered demand and a strong US dollar. Prices fell again Monday amid scepticism that OPEC would move aggressively to address the issue.
Saudi Arabia is said to be keen on maintaining its market share in America, with experts saying that it will attempt to price shale out of the market.
OPEC meets on Thursday.