OPEC not shifting strategy to shore up crude prices

UAE energy minister says any change in strategy won’t be considered until June meeting.

ABU DHABI, United Arab Emirates — The energy minister for the United Arab Emirates said his country is concerned about the balance in the oil market but added that OPEC does not plan to shift its strategy to shore up falling crude prices.

Oil prices have lost well over half their value since late June, with benchmark US prices now trading below $45 a barrel.

OPEC, a 12-member bloc that includes the Emirates, decided at its last meeting in November to keep its production levels unchanged. A decision to cut production could have helped boost prices – a move that would also benefit rivals including higher-cost producers benefiting from the US oil-shale boom.

Emirati Energy Minister Suhail Bin Mohammed al-Mazroui suggested his country believes OPEC’s move is still the right one despite the steep sell-off, and said the organization will likely wait until its next meeting in June before considering any change in strategy.

“We cannot continue just protecting a certain price,” al-Mazroui said at an energy conference in the Emirati capital, Abu Dhabi.

He said the Emirates is “concerned about the balance of the market but we cannot under any circumstances be the only party that is responsible to balance the market.”

2 Comments » for OPEC not shifting strategy to shore up crude prices
  1. Daniel Rankin says:

    What does al-Mazroui mean by “balance the market”? Does he mean raise prices so the UAE can make more money on top of the tremendous fortunes they’ve made off fuel consumption by North America? Of course they’d love to take back control of world oil supply, but the reality is the world wealth is shifting. There are new sources of oil. USA is now becoming less vulnerable to foreign oil by producing more of its own. New markets (China) are consuming more – hence new trade agreements. Supply and demand will determine the price. A free market will determine the price…like it should. As a North American consumer who’s lively hood depends on the price on oil, I’m pretty pissed off on how I’ve been exploited over the price to fill up…in fact since 1973. I like what’s happening!

  2. Opecker says:

    Wow this is sooo cool on my pocket book, all due to the Opeckers, and all the previous years was not sooo cool on my pocket book due to all the Opeckers.

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