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OPEC to take decision to promote stabilization of oil prices - Kuwaiti expert

November 23, 2014, 22:39 UTC+3 KUWAIT CITY
“Today they have two choices: either to reduce production or have it stay at the current level.", - a member of Kuwait's Supreme Petroleum Council told
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© AP Photo/Hasan Jamali,File

KUWAIT CITY, November 23. /TASS/. The Organization of the Petroleum Exporting Countries (OPEC) at a meeting in Vienna on November 27 will reach a solution that is to calm down global markets and promote the stabilization of energy sources prices, Abdul Majid Al-Shatti, a member of Kuwait's Supreme Petroleum Council, told TASS on Sunday.

“It is in the interests of OPEC, in the interests of all member countries to demonstrate people that the organization is doing its job,” he said. “Today they have two choices: either to reduce production or have it stay at the current level. It will be hard to OPEC to say, ‘Let us leave the things as they are.’ So, it will take a decision that is to keep the current prices (on oil) at the level of 80 U.S. dollars (per barrel) for a certain period of time.”

When asked whether geopolitical factors impacted the pricing policies, Al-Shatti said he doubted this thesis. “Some say that Saudi Arabia is cutting prices to harm Russia and Iran. But I doubt that Saudi Arabia will opt for such step.”

He said the drop in oil prices had obviously stemmed from a slump in economic indices in Europe and slowed down growth in China. “The demand is down, so the prices have dropped,” he said.

At the same time, he said he did not think OPEC would agree to reduce production. “All of the OPEC members want to keep their share. The market model has changed now - instead of dictating prices, they are seeking to keep their shares (on the market),” he said.

In his words, OPEC could not fully control the pricing process. “OPEC has been unable to control oil prices for years, and it cannot do it now. Market factors, market dynamics have bigget impacts on prices than OPEC,” he added.

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