The world will never again see the price of oil at $100 per barrel, Prince Alwaleed Bin Talal told CNBC.
While admitting that his country—which derives 90% of its budget from oil—is feeling the pain of the commodity's collapse, Alwaleed predicted that Saudi Arabia would not be the first to blink.
The lack of balance between oil supply and demand means the road back to $60-$70 range will be "not that easy, not that quick, the prince said.
Given this weakness in oil's price, Alwaleed admitted that the global strength of OPEC has weakened.
"Eventually there's no doubt that some countries have to blink and reduce their production.. I don't see Saudi Arabia or the OPEC countries blinking," he said.
Alwaleed said he thought oil prices could lead to political turmoil in countries like Venezuela that depend so much on the commodity and "don't have a lot of extra wealth on the side for that rainy day"—unlike Saudi Arabia and its neighbors.
Salman is a reformer at heart, Alwaleed said, and the country will continue down the same paths of financial, social and political reform as during Abdullah's reign.
While admitting that his country—which derives 90% of its budget from oil—is feeling the pain of the commodity's collapse, Alwaleed predicted that Saudi Arabia would not be the first to blink.
The lack of balance between oil supply and demand means the road back to $60-$70 range will be "not that easy, not that quick, the prince said.
Given this weakness in oil's price, Alwaleed admitted that the global strength of OPEC has weakened.
"Eventually there's no doubt that some countries have to blink and reduce their production.. I don't see Saudi Arabia or the OPEC countries blinking," he said.
Alwaleed said he thought oil prices could lead to political turmoil in countries like Venezuela that depend so much on the commodity and "don't have a lot of extra wealth on the side for that rainy day"—unlike Saudi Arabia and its neighbors.
Salman is a reformer at heart, Alwaleed said, and the country will continue down the same paths of financial, social and political reform as during Abdullah's reign.
Source:
Mubasher
