The world’s leading oil producing country, Saudi Arabia keeps stance on their oil productions despite poor prices, as the commodity tumbled on Tuesday due to fresh 5.5-year lows as Saudi Arabia blamed the weak global economic growth and stated that would stick its guns on production policy.
Based upon the US benchmark West Texas Intermediate for delivery in February sank $2.11 to $47.93 a barrel, a low last witnessed in late April 2009.
The Brent North Sea crude on its part also experienced its lowest price since early May 2009, their delivery for February price dived $2.01 to $51.10 per barrel.
The world oil market is still worried that there is no sign that the supply glut will start falling while James Williams of WTRG said the weakness in the market could take prices below $40 a barrel.
Despite the low prices of crude oil worldwide, Saudi Arabia’s Crown Prince Salman stated in a speech in behalf of the ailing King Abdullah on Tuesday, stated that the weak growth was to blame for the price fall, which already sliced deeply into the income of the world’s largest exporter.
The statement made by the Kingdom of Saudi Arabia appeared to confirm that the country is determined to defend its market share rather than reduce output, even if that pushes prices lower. Saudi Arabia reportedly cut its European and US export prices in order to maintain market share.
