Oil prices face the possibility of further declines, as officials from within Saudi Arabia indicate the oil nation is ready to further increase both its production and oil exports.
The comments were made by Saudi Aramco’s executive director for marketing, Ahmed Al-Subaey, who hinted that the national oil company is ready to increase its oil exports to and ever oil hungry India.
Ahmed Al-Subaey, who was fresh from meetings in New Delhi with Indian oil officials claimed “We have plenty of crude.…. You are not going to see any cuts from Saudi Arabia”.
Although the dominant force within the global oil cartel OPEC, Saudi Arabia seems to want to show an independence with its new dealings in India. This will invariably force their own production levels up, in light of OPEC’s decision on Friday 5th June, to keep production levels throughout its member states unchanged for the next 6 months.
It will bring a new production record to Saudi Arabia, who broke that same record only in May of this year, when they increased oil production to 10.3 million barrels per day.
With OPEC holding firm on production levels, Saudi Arabia increasing theres, and the US at an ever increased rush to secure energy independence from both its onshore fracking and offshore deep water oil production in the Gulf of Mexico, the route to an increased oil price is a path no one seems yet willing to take.