In an interview with USA Today, Saudi Prince Alwaleed bin Talal said Sunday he is “sure we’re never going to see” oil prices reach $100 per barrel again.
“I said a year ago, the price of oil above $100 is artificial. It’s not correct,” bin Talal said.
The billionaire investor said he supports Saudi Arabia’s decision to maintain current output levels even as global supplies spike and demand weakens.
“Although I am in full disagreement with the Saudi government, and the minister of oil, and the minister of finance on most aspects, on this particular incident I agree with the Saudi government of keeping production where it is,” bin Talal said.
The prince said OPEC’s refusal to cut output is a byproduct of competing agendas among the group’s members.
Venezuelan oil officials have called Saudi Arabia’s reluctance to trim output a “price war”
“Frankly speaking, to get all OPEC countries to approve and accept it, including Russia and Iran, and everybody else, is almost impossible,” bin Talal said.
He expects plummeting oil prices to push shale producers out of the market although the break even point for shale projects remains “unclear.”
“No one knows for sure what price is the breaking point for shale…. At $50, will it still be economically feasible? Unclear. This is a very much developing story,” bin Talal said.
Prince bin Talal also took on rumors that Saudi Arabia was collaborating with the United States to keep oil prices low in an effort to hurt the Russian economy.
“Two words: baloney and rubbish. I’m telling you, there’s no way Saudis will do this. Because Saudi Arabia is hurting as much as Russia, period,” he said.