Saudi oil Minister predicted the changing role of OPEC on the market

The Minister of energy and industry of Saudi Arabia Khalid al-falih, who took his post in may, urging people not to expect that the Organization of countries — exporters of oil (OPEC) will affect oil prices by adjusting supply volumes. According to The New York Times, about al-falih said several journalists who had gathered in his hotel room after a meeting of OPEC on Thursday.

“I think regulation is the traditional way that we have experienced in the past may never be repeated”, — said the Minister. “Definitely, we will not be tied to specific price targets”, he added.

According to al-falih, oil producers must “allow market forces to continue to find the price equilibrium of supply and demand”.

While other OPEC members are encouraged to freeze or reduce oil production, al-falih insisted that to keep the level of production at a high level and invest in other sectors that can bring profit to Saudi Arabia, says The New York Times.

“He wants the cartel revised its old approach and the belief that it can control world oil supplies and prices. This goes against long-standing position of his predecessor, Ali al-Nuaimi, who headed in an era when OPEC was willing to hold back production to try to push the price up,” writes the newspaper.

Thursday, June 2, the country’s OPEC meeting in Vienna failed to agree on the specific figures for the quotas for oil production. The current official quota of 30 million barrels a day — was installed in 2011.

The OPEC meeting in Vienna was the first for al-falih as Minister of energy, industry and mineral resources of Saudi Arabia. He led the Department in early may, succeeding Ali al-Nuaimi, who held the post of Minister of oil since 1995. The resignation of Ali al-Nuaimi has occurred against approved in April, the development programme “Vision 2030″, which includes a national plan of transformation. The son of the Saudi king Mohammed bin Salman after the adoption of this plan stated that by 2020 Saudi Arabia will be able to live without oil”.