This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-30531829
The article has changed 2 times. There is an RSS feed of changes available.
Previous version
1
Next version
Version 0 | Version 1 |
---|---|
Oil price fall is temporary, says Saudi minister | Oil price fall is temporary, says Saudi minister |
(about 20 hours later) | |
Recent falls in the price of oil are likely to be temporary, says the oil minister for Saudi Arabia, Opec's biggest producing nation | Recent falls in the price of oil are likely to be temporary, says the oil minister for Saudi Arabia, Opec's biggest producing nation |
Ali al-Naimi said commodity price fluctuations were to be expected and said he was hopeful for the future. | Ali al-Naimi said commodity price fluctuations were to be expected and said he was hopeful for the future. |
He added it was "difficult, or even impossible, for Saudi Arabia or Opec to undertake any measure that would lead to a reduction in [their] share of the market and an increase in of others". | He added it was "difficult, or even impossible, for Saudi Arabia or Opec to undertake any measure that would lead to a reduction in [their] share of the market and an increase in of others". |
The price of oil has halved since June. | The price of oil has halved since June. |
On Thursday, the price of Brent crude was just below $63 a barrel, while US crude was near $58. | On Thursday, the price of Brent crude was just below $63 a barrel, while US crude was near $58. |
Oil prices, which were well above $100 a barrel in the summer, have slipped because of slowing economic growth in developing nations, particularly China, and an increase in fuel supplies, partly thanks to advances in shale gas extraction. | Oil prices, which were well above $100 a barrel in the summer, have slipped because of slowing economic growth in developing nations, particularly China, and an increase in fuel supplies, partly thanks to advances in shale gas extraction. |
Mixed fortunes | Mixed fortunes |
Oil consuming nations are enjoying lower fuel and food prices, while exporting nations, including Russia and members of the Opec oil producers' cartel, are suffering big drops in income. | Oil consuming nations are enjoying lower fuel and food prices, while exporting nations, including Russia and members of the Opec oil producers' cartel, are suffering big drops in income. |
The lower oil price has contributed to Russia's recent currency collapse as its economy is heavily dependent on oil for revenue. | The lower oil price has contributed to Russia's recent currency collapse as its economy is heavily dependent on oil for revenue. |
Opec member Nigeria is also reliant on oil for income. On Wednesday, it restated its budget to take into account the new, lower oil price. | Opec member Nigeria is also reliant on oil for income. On Wednesday, it restated its budget to take into account the new, lower oil price. |
Meanwhile, the oil and gas industry is beginning to cut back on investment and jobs. | Meanwhile, the oil and gas industry is beginning to cut back on investment and jobs. |
Smaller members of Opec had hoped to see a reduction in output, since a production cut generally lifts the oil price. | Smaller members of Opec had hoped to see a reduction in output, since a production cut generally lifts the oil price. |
However, the last Opec meeting in November concluded without a vote for lower production. | However, the last Opec meeting in November concluded without a vote for lower production. |
Opec produces about a third of the world's crude oil, about 30 million barrels a day, of which Saudi Arabia pumps 9.6 million. |
Previous version
1
Next version