Reported by Mohammed Abu Meleeh
After long waiting for OPEC decision, Saudi Oil Minister Ali Al-Naimi said OPEC member states decided not to cut oil output, according to CNBC Arabia TV.
Economist Dr. Jamal Zarrouk, told Mubasher in a phone call that OPEC’s decision to maintain oil output was expected, and was not a surprise.
Zarrouk, who was also a former expert at the Arab Monetary Fund, said this decision, however, will impact prices and state budgets.
He indicated that several countries, such as Iran and Algeria, will be significantly impacted; thus they would invite for another OPEC meeting to find a solution to the problem of falling prices which are likely to continue after OPEC’s decision.
However, Zarouq said if the decision impacts the budgets of GCC countries, they will be able to withstand such impacts for several years.
Eng. Barges Hamoud Al Barges, economic writer, said the decision will not impact prices significantly, as the recent decline in prices was due to supply and demand.
Al Barges also said OPEC has no longer been the main driver of oil prices, as it was before the appearance of shale gas.
He expected that oil prices will decline in reaction to OPEC decision. “However, what is most important is that prices should stabilize,” the expert said.
Al Barges said oil prices are likely to stabilize at $75-85, which are considered safe for several budgets.
Translated by Abdul Maguid Aboshahla