facebook
twitter
rss
account
search
search
 

Saudis driving oil markets

June 15, 2012 at 6:51 AM   |   Comments

VIENNA, June 15 (UPI) -- Further declines in crude oil prices may force Saudi Arabia to reduce production following an OPEC decision to keep production quotas in place, an analyst said.

Oil prices spiked in the first quarter of 2012 after Iran threatened to close key oil shipping lanes in response to tightened sanctions. As more countries move away from Iranian crude, meanwhile, Saudi Arabia has ramped up production to meet market demands.

Members of the Organization of Petroleum Exporting Countries, during their regular meeting in Vienna this week, opted to keep production quotas in place despite slumping crude oil prices.

The International Energy Agency described oil markets as well-supplied. Jason Schenker, president of commodity research company Prestige Economics, told Bloomberg News that Saudi Arabia would have to clamp down on supplies should oil prices slump further.

"It puts some of the onus on the Saudis but, at the end of the day, they're going to remain very responsive to what happens in the world market," he said.

© 2012 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
Recommended UPI Stories
Featured UPI Collection
trending
Notable deaths of 2014 [PHOTOS]

Notable deaths of 2014 [PHOTOS]

Most Popular
1
Kurds claim win in latest oil row
2
Putin says hands tied on gas issues
3
Tanzania positioned as LNG hub, BG Group says
4
North Dakota gets more gas processing capacity
5
Zara pulls toddler shirt featuring apparent Holocaust star from stores
Trending News
Video
x
Feedback