OPEC can’t slice oil generation alone to balance out the market, as indicated by the previous Saudi Arabian vitality serve who planned the pump freely arrangement the gathering received two years prior.
“I don’t think OPEC by itself should cut,” Ali Al-Naimi, who for two decades was arguably the world’s most influential oil official until he retired in May, told a Chatham House event in London. While Al-Naimi stood by the November 2014 decision when Saudi Arabia led OPEC to keep pumping, triggering a price collapse, he said the situation has changed somewhat as other producers, including Russia, are talking to the group about coordinated cuts.
“Other producers now are thinking about cooperating,” said Al-Naimi, 81, who is in the U.K. promoting his memoir. “That’s great. If they cooperate and deliver, it’s good.”
OPEC, which pumps about 40 percent of the world’s oil, meets on Nov. 30 in Vienna to try to implement its first cuts in eight years after agreeing to trim output in Algiers at the end of September. Two years ago Saudi Arabia faced an impasse, Al-Naimi said, commenting on OPEC’s decision to pump without limits.
“We tried hard to get everybody to cooperate,” said Al-Naimi. “They didn’t. Then, I remember asking every OPEC minister: “Will you cut? will you cut? will you cut?” All the answers were “no,”” he said, explaining that then Saudi Arabia, the world’s largest oil exporter, refused to go it alone. “I think that was and still is the right decision,” he said.