Saudi Oil Minister Naimi suggests OPEC does not need to cut output in effort to drive up price
Saudi Arabia's oil minister is suggesting there is no need for OPEC to cut output despite a major fall in prices that has some other cartel members hurting.
Ali Naimi said Wednesday he expects the oil market to eventually "stabilize itself." That suggests the Saudis, who effectively determine OPEC's policy as its top producer, will not back any calls for reducing output by other nations at Thursday's oil ministers' meeting.
The global price of oil has fallen 32 percent since late June to $78 a barrel, from $115, amid booming shale production in the United States. That, and continued weakness in some major world economies, has led to supply outpacing demand.
While the Saudis can weather such prices, poorer OPEC members like Venezuela and Nigeria need prices closer to $100.