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18 Dec, 2014 15:20

​‘Impossible’ to cut oil production - Saudi oil minister

​‘Impossible’ to cut oil production - Saudi oil minister

Saudi Arabia, home to the world’s second largest oil reserves, says it can’t afford cutting oil production, even despite the falling prices.

"It is difficult, or rather impossible [to imagine – Ed.] that Saudi Arabia and OPEC take any measures leading to a reduction in their share of the market and increase the share of others, " Ali al-Nuaimi, the country’s oil minister, said Thursday referring to non-OPEC countries.

Oil prices started to plummet after OPEC members chose to keep production as is, saying prices should be driven by market forces.

READ MORE: OPEC ‘effectively dissolved’; oil will slide to $50 - Bank of America

Prices have lost more than 45 percent from their peak of US$115 a barrel this summer. However, on Thursday they were heading for their biggest gain in more than two weeks in New York, as more investors and experts are coming to the conclusion that the oil price plunge was excessive. Brent crude stood at above $62 a barrel at 17.40pm MSK, with the WTI being traded at $57 a barrel.

Ali al-Nuaimi believes influencing the oil market in order to obtain political gain can lead to errors.

READ MORE: Iran claims ‘conspiracy against Muslim people’ drags down oil prices

He added that fluctuations in oil prices are a normal thing as the current crisis in the oil market is "temporary and transitional.”

"We can survive temporary fluctuations [of the oil price – Ed.] without a loss," said Al-Nuaimi.

Earlier, the government of Saudi Arabia said that the stability of the oil market implies cooperation by all producing countries and cannot be ensured by OPEC member countries alone.