Mexico and Saudi Arabia say they want to bring stability to oil markets

Following talks, Mexico´s energy minister, Pedro Joaquin Coldwell, and his Saudi Arabian counterpart, Ali al-Naimi, agreed that all efforts should be made to bring stability to the world´s oil markets, according to remarks by the Mexican government, Reuters reports.

That comes as market commentary highlighted how traders and even OPEC delegates were in apparent disagreement over whether Saudi Arabia would agree to a reduction in OPEC´s level of oil output when the cartel next meets, in Vienna, on 27 November.

Previously on Thursday, al -Naimi had indicated in rather non-committal terms that “we want stable oil markets and steady prices, because this is good for producers, consumers and investors.”

Nevertheless, traders remember how that was also his stance even in the middle of the past decade when prices above $140 dollars per barrel were reached. As well, the question remains over just how much influence the Middle Eastern Kingdom retains on oil markets given the US shale energy revolution and how willing it may be to bear the better part of any reduction in production levels.

Indeed, Saudi TV channel Al Arabiya has reportedly been broadcasting interviews with Gulf Arab analysts saying there will be no cut, Reuters added.

As well, in the medium-term the current bout of weakness in oil prices might help to curb the expansion of the US shale oil industry, which would work in favour of OPEC, it is thought.

Data released earlier in the day by the Energy Information Administration, the statistical arm of the Department of Energy, revealed that domestic US oil supplies rose by 91,000 barrels a day in the week ending on 7 November, to reach, 9.063m barrels per day - a 30-year high. In comparison with a year ago daily domestic US oil production stood 1.082m barrels higher.