A Bloomberg report citing the Saudi Press Agency said the Kingdom would work with producers within and outside the Organization of the Petroleum Exporting Countries to stabilize the market.
The news sent oil price futures higher on international indices on Monday, but speculation about a global supply glut and signs of rising U.S. stockpiles caused what Reuters called a wild ride on Monday.
OPEC will meet December 4th.
OPEC ministers are set to meet Dec. 4., but reports of disunity and frustration among smaller producers are also circulating.
While times are tougher for smaller producers in OPEC, like Algeria, Angola, Ecuador, Nigeria and Venezuela, Saudi Arabia has deeper pockets, and thus, a longer tolerance for lower prices. “Things are not as bad as they may look at first glance,” writes Ashmore Regional Director John Sfakianakis in the Telegraph.
“Saudi Arabia managed to save a lot of money from the oil rally between the early 2000s and last year.”
The Kingdom recently managed to reclaim its position from Russia as the largest crude supplier to China, which has become a battleground for oil producers who are seeking to defend sales amid a worldwide oversupply.
