Kingdom ‘rules out’ oil output cut ahead of key meeting

Saudi Oil Minister Ali Al-Naimi appeared to rule out cutting his country’s oil production in remarks published Wednesday, days ahead of the crucial Doha meeting aimed at propping up crude prices.

Asked about the Kingdom’s position on reducing output, Naimi said: “Forget about this topic,” Al-Hayat daily reported on its website, without elaborating. “Oil prices are always volatile,” he said.

Members of the oil-exporting cartel OPEC and non-OPEC producers will meet Sunday in Doha to discuss freezing production at January levels.

Saudi Arabia’s production in March remained almost at the same levels as in January.

Iran has said it will not join a freeze as it is still ramping up production following the lifting of nuclear-linked sanctions in January.

Deputy Crown Prince Muhammed Bin Salman, second deputy premier and minister of defense, has said the Kingdom would only freeze output if Iran and other major producers are also on board.

OPEC warned Wednesday in its April report that the world remains awash with crude, but said oil prices rose more than 20 percent in March, continuing a slow recovery from the huge drop of 2014-15.

“Positive market sentiments continue to arise from the output freeze plan being considered by major crude exporters,” as well as an expected fall in output in the United States and elsewhere, OPEC said.

“Nevertheless, hurdles prevail as oversupply persists and inventories remain high,” it warned.

All oil producers, not just those in the 13-nation OPEC but also non-cartel members like Russia, have suffered from the more than 60-percent drop in oil prices since mid-2014.

An agreement in Doha on Sunday to freeze production would, in theory at least, reduce the glut, boost prices and help repair their in some cases — for example Venezuela — dangerously tattered public finances.