Saudi Arabia Says Oil Will Stabilize, Signals Output Cut Unlikely

Ahead of Thursday's OPEC meeting, Saudi Arabia's oil minister Ali al-Naimi told reporters in Vienna that crude oil 'will stabilize itself.'
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Ahead of Thursday's OPEC meeting, Saudi Arabia's oil minister Ali al-Naimi told reporters in Vienna that crude oil 'will stabilize itself,' signaling he would likely not push to cut oil output in order to drive up prices, which have dropped by a third since June. Fellow OPEC member, the United Arab Emirates, agreed with Al-Naimi, while Venezuela and Iraq have called for output cuts. Brent crude oil fell below $78 a barrel following al-Naimi's comments. Igor Sechin, head of Russia's largest oil producer Rosneft said on Tuesday that non-OPEC member Russia is not planning to cut production. Jefferies equity analyst Jason Gammel said he does not expect that OPEC will be able to agree to a production cut that would be large enough to spur a rally in Brent prices in the near term.