Marked sudden fall in international oil prices concerns globally

Dissident member of OPEC (Organization of Petroleum Exporting Countries), Saudi Arabia said that it could not afford cut in production as expected, rather it could still be possible to take up the matter for consideration later sometime in the year.

Participating in the ongoing meeting of International Energy Forum at Algiers, where OPEC and other non OPEC members were present, Saudi Energy Minister Khalial-Falih opined in presence of reporters that Iran, Libya and Nigeria were allowed to produce to their maximum capacity, as seen in the recent history.

Oil prices had fallen less than compared to their 2014 highs. OPEC producers and Russia had been trying for a while to explore means of rebalancing the oil price mechanism that would help boosting oil revenues on which their National budgets depended.

However, analysts voice that even if there were production freeze, excess barrels could not be removed fully. This was the second round of talk to reach an agreement on oil production after first failed attempt in Doha, earlier this April.

Saudi Arabia again stuck to their same argument that Iran had to freeze production, which was Saudi's precondition to reduce their output. But Iran downplayed the demand of Saudi by saying that the role of forum was merely advisory.

All the more, analysts mentioned that current high production rate of Russia and Saudi Arabia combined with the enhanced capacity of Libya and Nigeria rendered this discussion in Algiers almost useless.

Russia's Oil Minister on Tuesday made a statement that Russia would freeze oil production in present level which touched to all time high at 11.73 million barrel per day.

However, Algiers discussion was in sharp contrast with reality as viewed by analysts. What ultimately emerged from the talk was present situation would continue resulting in ongoing overproduction.

Meanwhile Saudi Arabian King Salman on Monday vide a royal Decree declared a wage cut to the tune of 20 percent for all cabinet ministers and reduced other state officials' benefits in a continuing austerity drive to cope with lower oil revenues. This also included members of the Shura that included 30 women members would see 15 percent reduction in their annual allowances for housing furniture and cars.

(Reporting by Chandan Som)