Gulf nations including Saudi Arabia, Kuwait and the United Arab Emirates are set to oppose any cut to OPEC’s oil production ceiling at next month’s meeting despite the continuing fall in global oil prices, according to several people familiar with the situation.
Despite the drop in prices, Gulf nations fear any lowering of the limit on the amount that can be produced by the Organization of the Petroleum Exporting Countries would lead to members of the cartel losing share in global oil markets.
“Saudi Arabia and the rest of the Gulf countries have no intention whatsoever to accept the idea of a cut at the November meeting,” a Gulf OPEC official said. “If we are going to end up with lower market share, prices will fall anyway, let’s stick to market share.”
Another Gulf official said U.S. oil prices could fall to around $70 a barrel before substantial quantities of U.S. shale oil production become uneconomic.
OPEC is due to hold its next meeting on Nov. 27 in Vienna.
Also read: Oil struggles to hold $80
The Wall Street Journal: Saudis, other Gulf states to oppose OPEC output cuts
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