WASHINGTON, Jan. 12 (UPI) -- Saudi Arabia's Prince Al-Waleed bin Talal said oil prices at $100 a barrel will never happen again, calling the price artificial and not correct.
The Saudi prince also supported the decision the Saudi Arabian government took of keeping production high, calling it "prudent smart and shrewd," but distanced himself by saying oil policy is the only point in which he agrees with the government.
He said in an interview with USA Today that if Saudi Arabia cut production, then the amount cut by the country would be produced by others. Meaning that Saudi Arabia "would have had two negatives, less oil produced, and lower prices."
He said "it's a no-brainer" that prices have lowered because there is a surplus of oil and demand is low, acknowledging the law of supply and demand. Countries like Japan, India and Germany have had reduced or stagnant demand. He said oil prices could continue to lower if conditions remain.
Recently, Chevron made a major oil discovery in the Gulf of Mexico which may see 500 million barrels of oil produced over 30 years.
Getting the countries of OPEC to agree to cut production is "almost impossible," he said. Countries will also cheat and take market share away from others. By keeping prices low, new projects such as shale oil production may become economically unfeasible, which means Saudi Arabia will maintain its market share.
The Prince rejected the claim that lowering oil prices was a conspiracy by the U.S. and Saudi Arabian government to put pressure and punish Russia for their actions in Ukraine. He called the accusation "baloney and rubbish" and stated that Saudi Arabia is "hurting as much as Russia."
