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OPEC Is Ready to Rumble Over Saudi Output — Energy Journal

OPEC Is Ready to Rumble Over Saudi Output — Energy Journal
November 30
20:14 2015

Saudi Arabia is facing a showdown over oil output with other members of the Organization of the Petroleum Exporting Countries at its upcoming meeting, Benoit Faucon, Summer Said and Bill Spindle report. The Saudis have kept production high to win market share, but rivals like the U.S. have proven resilient and prices have stayed low. So OPEC members including Iran have run out of patience and are preparing to press Saudi Arabia directly to cut production at the group’s meeting this week.

Still, the Saudis aren’t likely to relent, in part because they are wary of rising Iranian output as sanctions are lifted. The result is likely to be a continued standoff that keeps the market glutted and prices weak.

Militant group Islamic State has expanded militarily in OPEC member Libya and set up a new base close to Europe where it can generate oil revenue and plot terror attacks. Libyan officials said they are worried it is only a matter of time before the radical fighters attempt to take over more oil fields and refineries, Tamer El-Ghobashy and Hassan Morajea report, although some residents of the hometown of former Libyan dictator Moammar Gadhafi put up fierce resistance.

Fellow OPEC member Kuwait replaced oil minister Ali Al-Omair and appointed Anas al-Saleh as acting minister. A royal decree didn’t give a reason, but a person familiar with the matter said the decision came after Mr. Omair faced opposition to his attempts to change the management structure of state oil companies.

 

 

Continue reading at http://blogs.wsj.com/moneybeat/2015/11/30/opec-is-ready-to-rumble-over-saudi-output-energy-journal/

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