The US dollar's upside momentum has faded, but oil prices remain depressed. Many observers try, too hard perhaps, to link the decline in commodity prices in general, and oil in particular, to the appreciation of the dollar. Yet the situation is considerably more complicated.
Saudi Oil Minister Ali al-Nuaimi said he was satisfied with the current price of oil and saw no reason to change output quotas, as he arrived in Vienna Monday for an OPEC meeting later this week."Am I comfortable with the price? Yes," Nuaimi, the de-facto head of the Organisation of Petroleum Exporting Countries (OPEC), told journalists ahead of the cartel's meeting on Thursday."The price between 70 and 80 (dollars per barrel) is an ideal price," he added, noting that he was "happy" with the current situation.
What is Saudi Arabia’s bottom line for propping up oil prices unilaterally before it leans on the rest of OPEC to help share the burden?
At $112 a barrel for Brent crude, well above OPEC’s preferred $100, it may not look like a hot issue just yet.
As Ali al-Naimi, oil minister for Saudi Arabia, OPEC’s biggest producer said this week, the oil market is in “the best situation it can be” and at “the right price.”