Saudi Arabia thumbs its nose at fellow OPEC members and vows to continue pumping oil at full tilt.
NYT: Hours after suffering a rare setback at OPEC headquarters, where the cartel said its members needed to lower production to keep prices from sinking below $100 a barrel, Saudi officials assured world markets on Wednesday that they would ignore the decision and continue to pump as much oil as needed…
The Saudi message is to wait and see where demand is headed before reducing supplies. The OPEC decision in effect puts the kingdom in the driver’s seat in setting its output for the autumn, according to Greg Priddy, an energy analyst at Eurasia Group.
“Clearly, other OPEC members are not going to trim their own production without Saudi Arabia returning to its quota,” Mr. Priddy said in a research note. “Saudi Arabia also seems to be eager to avoid headlines about it cutting production in advance of the U.S. elections.”
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