“If we can get all the major producers to not add additional barrels then this high inventory we have now will decline. It is going to take time,” he said.
Al-Naimi defended Saudi decisions to not cut its own output to make room for U.S. shale oil in the market. “We have not declared war on shale,” he said, “contrary to all the rumors that you hear and see.”
He explained that for low-cost producers to cut their production in the face of new higher-cost supplies, “only delays an inevitable reckoning.”
“Efficient markets will determine where on the cost curve the marginal barrel resides,” he said, later adding: “Inefficient producers will have to get out.” .... http://www.forbes.com
