Oil prices slide on stronger dollar, supply concerns
Saudi Arabia, Venezuela ministers meet to stabilise market
Crude oil prices recorded losses yesterday after witnessing a little boost at the later part of last week.
A barrel of West Texas Intermediate (WTI) recorded a 2.69 per cent loss at $30.89 while global benchmark – Brent crude oil was down by 1.17 per cent to $34.06 as at yesterday, against $34.14 it traded on Friday.
Light, sweet crude for March delivery fell by 2.6 per cent to $30.89 a barrel on the New York Mercantile exchange.
This latest development may be as a result of a stronger dollar and concerns that the oversupply of crude will persist.
Meanwhile, Saudi Arabian Oil Minister, Ali al-Naimi has held a “successful” meetng with his Venezuelan counterpart about ways of cooperating to stabilise the crude market, without saying what steps producers should take to shore up prices.
The two ministers, who met yesterday in Riyadh, discussed Venezuelan Oil Minister Eulogio Del Pino’s recent discussions with other crude producers and the results of those meetings that seek cooperation among suppliers to bring stability to the market, the Saudi ministry said in an e-mailed statement.
Venezuela and Saudi Arabia are both members of the Organisation of Petroleum Exporting Countries (OPEC), which supplies about 40 per cent of the world’s oil.
“I’m very happy to meet and consult with my colleague-Venezuelan Oil Minister Eulogio Del Pino. It was a successful meeting in a positive atmosphere,” Naimi said in the statement without elaborating.
Del Pino met with al-Naimi after visiting Russia, Iran, Qatar and Oman on a tour to drum up support for Venezuela’s attempt to buttress oil prices. Saudi Arabia is the largest producer in OPEC and led the group’s strategy in 2014 to defend market share against rival high-cost producers, including U.S. shale drillers, instead of defending oil prices.