These are the words of OPEC’s de facto leader, Ali Al Naimi of Saudi Arabia, following a highly caustic and dramatic meeting in Vienna today. The meeting was predicted here and elsewhere to be a very tumultuous session for the 12-member body, and it did not disappoint. Little was agreed upon, and the uncertainty as a result sent both the Brent and WTI indices higher.
But the lack of any agreement from the meeting does not mean that Saudi Arabia, by far the largest oil producer in both OPEC and the world, will do nothing to curb soaring prices. In a go-it-alone move, discussed on this website last evening and in detail today in the WSJ’s MarketBeat blog, Saudi Arabia is taking matters into its own hands by producing more oil unilaterally. This should allay any concerns that demand is outpacing supply, and theoretically send prices lower.
Yet again, the world is presented with evidence that Saudi Arabia is a reasonable and responsible producer of petroleum. In order to keep oil prices consistently lower than what they are now, the other two key actors in the petroleum trade, the consumers and the traders, must also do their part. However, failure on the part of consumers to reduce demand and irresponsibility (at best) from speculators are contributing to a wild market and a price that is, arguably, too high.
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