Saudi Arabia Will Sell Oil at Low Prices
Posted: 10/13/2014 02:10:25 Edited: 10/13/2014 02:10:25 Clicks: 992
It is reported that Saudi Arabia will sell oil at low prices for political reasons.
Rashid Abanmy, the CEO of Saudi Arabia Oil Policy & Strategy Forecast Center stated that Saudi Arabia would reduce oil prices to impose political pressure to Iran and Russia.
Abanmy said that to force Iran to restrain its nuclear program and Russian standpoint on Syria, Saudi Arabia would sell oil at prices of 50 dollars to 60 dollars per barrel in Asian market and North American market. The prices would be far less than current average spot prices. Abanmy stated that in recent three months, spot price of oil had been reduced from 115 dollars to 92 dollars, which was resulted by Saudi Arabia.
Abanmy said that with oil demands declining, oil prices reduction seemed to attract new customers. However, its true cause was originated from political reasons. Saudi Arabia expects to restrain Iran to enlarge its nuclear program and force Russia to change its standpoint that supports Assad, the Syrian President. Abanmy pointed out that both Iranian and Russian finance had high dependence on oil export earnings. Oil prices falling means that their fiscal revenues will be decreased sharply. He supplemented that oil prices declining had little influence on Gulf countries.
Abanmy said that OPEC who had arbitration right on oil prices could not affect the decision of Saudi Arabia. OPEC consists of Saudi Arabia and other 11 countries. He explained that the decisions made by OPEC could only play a role as suggestion. OPEC does not have mandatory binding on members.
Rashid Abanmy, the CEO of Saudi Arabia Oil Policy & Strategy Forecast Center stated that Saudi Arabia would reduce oil prices to impose political pressure to Iran and Russia.
Abanmy said that to force Iran to restrain its nuclear program and Russian standpoint on Syria, Saudi Arabia would sell oil at prices of 50 dollars to 60 dollars per barrel in Asian market and North American market. The prices would be far less than current average spot prices. Abanmy stated that in recent three months, spot price of oil had been reduced from 115 dollars to 92 dollars, which was resulted by Saudi Arabia.
Abanmy said that with oil demands declining, oil prices reduction seemed to attract new customers. However, its true cause was originated from political reasons. Saudi Arabia expects to restrain Iran to enlarge its nuclear program and force Russia to change its standpoint that supports Assad, the Syrian President. Abanmy pointed out that both Iranian and Russian finance had high dependence on oil export earnings. Oil prices falling means that their fiscal revenues will be decreased sharply. He supplemented that oil prices declining had little influence on Gulf countries.
Abanmy said that OPEC who had arbitration right on oil prices could not affect the decision of Saudi Arabia. OPEC consists of Saudi Arabia and other 11 countries. He explained that the decisions made by OPEC could only play a role as suggestion. OPEC does not have mandatory binding on members.
