Gulf oil-producing countries are expected to resist calls to cut production at the meeting of the Organisation of Petroleum Exporting Countries (OPEC) next month, reports Saudi-based Al-Hayat.
Analysts explain that these countries continue to maintain their market shares at the top of their priorities.
The 12 member states resisted calls to cut production at OPEC’s meeting in November last year, which led to the deterioration of prices by 60 per cent, before they recovered in recent weeks.
Abdul Wahab Abu Dahish, a Saudi economic researcher, says that maintaining market share remains a top priority for the Gulf States.
“This time, they are even encouraged by signs their November strategy is working after a drop in US shale oil production and in the number of rigs,” he says.
In an attempt to face the sharp drop in revenues from the oil, some OPEC members, especially Iran and Venezuela, have publicly called for production cuts to support prices.
It is likely that the burden of any production cut will fall on the Gulf countries, namely Saudi Arabia, Kuwait, the UAE and Qatar, which have increased their production by about 3.5 million barrels per day since 2011.