The Saudi Arabia oil minister Ali Naimi has assured that current global fall in crude oil prices by as much as 70 per cent will also facilitate the expected recovery of global economy.
Crude oil prices have been on the decline since the middle of 2008, but the minister of petroleum in the world’s largest producer of crude said in India at the commencement of “Petrotech 2009” Special Ministerial Session which held in New Delhi that the recession will eventually lead to another era of increase in the purchasing power of nations and individuals translate into a boost of purchasing power in billions, and possibly trillions of dollars for nations and individuals.
He acknowledged that “the price of oil, which is the primary source of energy, has declined in recent months by more than 70 per cent since reaching the highest levels in Jul”, predicting that the fall “will play a major role in aiding economic recovery.
Indicating that the price slash was not without the knowledge of stakeholders, Naimi disclosed that it is “partially due to the cooperation of producers and consumers, and as such demonstrates the ameliorating effect that can be achieved when stakeholders work together… With collaboration, combined with the Kingdom’s moderate pricing policies, this aided price moderation for a short period. However, because of the current worldwide economic and financial downturn, price deceleration is to levels not reflective again of market fundamentals”.
“These lower oil prices are an important stimulus for a recovery translating into a boost of purchasing power in the billions, and possibly trillions, of dollar for nations and individuals-essentially a welcome injection of liquidity into consumers’ pockets. Clearly, these beneficial effects can speed the recovery of emerging economies, he assured.