Sellof not done...Saudis are doing everything they can to push oil prices down further to slowdown the expansion of production in non-opec countries. In the past Saudis did not talk much to the press, now they talk everyday. It' comical. Oil prices stabilized a bit this week but then their oil minister addresses the press today saying again that they would not reduce production (see quote below). The only reason for these comments was to rattle the market some more and drive prices down (and it worked!). I believe that the Saudis are not done and they will not stop until prices reach 40$ in Q1 2015. AIMO
'Saudi Arabia, the largest producer in OPEC, will stick to its policy to maintain output, Oil Minister
Ali Al-Naimi said. The Organization of Petroleum Exporting Countries last month refused to cut production at a meeting in Vienna. Prices rallied earlier this week on speculation recent losses were excessive.“On close examination, a lot of Naimi’s comments are quite negative,” said Gareth Lewis-Davies, a London-based analyst at BNP Paribas SA. “He is unwilling to change his position. It’s too early to call a bottom.”