Saudi Arabia Won’t Limit Oil Production

No spat with Iran gets in the way of the cash!

Saudi Arabian Oil Minister Ali al-Naimi said the kingdom, the world’s top crude exporter, does not limit its output and has the capacity to meet additional demand, state television Al Ekhbariya reported on Wednesday.

“The increase in production depends on … the demand of the customers. We meet our customers’ demand, there is no longer a limit to production, as long as there is demand, we have the ability to meet demand,” Naimi said.

The Wall Street Journal, which reported the same comments as Al Ekhbariya, also quoted Naimi as saying Saudi Arabia’s oil policy was “reliable” and would not change. He has made similar comments in the past when asked about plans to boost production.

On Monday, Saudi Arabia, its finances hit by low oil prices, announced plans to shrink a record state budget deficit with spending cuts, reforms to energy subsidies and a drive to raise revenues from taxes and privatisation.

Saudi Arabia’s planned cuts in spending and energy subsidies signal the kingdom is bracing for a prolonged period of low oil prices which this month hit their lowest levels since 2004.

  • terrence

    Here is a quote about the Strait of Hormuz from

    “The narrow Strait of Hormuz is considered one of the most, if not the most, strategic strait of water on the planet.

    Through its waters, in giant ocean-going tankers, passes much of the oil from Bahrain, Iran, Iraq, Kuwait, Qatar, Saudi Arabia and the United Arab Emirates.”

    I just heard someone on the radio say that Iran may bomb the Strait shut. If things with the Soddies get even a bit worse, then they will for sure (the old sunni vs shiite thing). This will hurt the Soddies a lot, and probably the common Iranians (whom the imams ignore and stomp on). But, it may well happen.

    The radio said a number of “experts” said this could double the price of oil. If it does, I am sure Nutley will take credit for it, and its beneficial impact on the Alberta economy.

    • Norman_In_New_York

      Should that happen, there will be a full-scale war, with both sides beating each other down.

      • terrence

        Hopefully it will happen and they annihilate each other

      • Watch it happen.

  • Waffle

    Nothing like cutting off your nose to spite your face, eh? Oh wait . . . they chop off heads, don’t they?

  • bob e

    i don’t see why the west can’t turn this saudi oil thing to
    their own benefit. oil was not always 100 a barrel.