Crude Oil prices still falling – Fear About Possible Saudi Posturing
After the Saudi announcement Crude oil prices are continuing their slide, with the benchmark price of one barrel Brent crude oil remaining below $30 – said BBC on July 6.
Brent crude for August delivery closed down 20 cents on the day on Wednesday to $29.35 a barrel, sharply lower than its Monday peak of $31.25 prior to the Saudi statement.
However, there are fears that Saudi Arabia could may just have been posturing to bring down the price of oil, and that it will not act without the full consent of its fellow members of OPEC. This assumption is based on different signals with expectations that other Opec members are about to join the Saudis in boosting production.
Opec President Ali Rodriguez said the organization would only raise output insisted the cartel will raise production only after full consultations and the agreement of all members , as Opec president, Mr Rodriguez mentioned - "We all continue to share what has been a longstanding practice in Opec to take decisions unanimously and after consultation." But he added a significant addition saying that :"if the price stays above $28 for a long time, Opec would take actions."
The most intriguing question is: will other oil producers join the saudi’s move: United Arab Emirates, Kuwait and Algeria could join Saudi Arabia by increasing supply by an overall 500,000 barrels a day, with the Saudis contributing to the bulk of the increase and an announcement was expected within the next few days.