Ali al-Naimi, the Saudi Arabian oil minister, said Sunday that the kingdom had sliced its oil output by some 800,000 barrels per day in response to what he said was an oversupply, despite soaring prices.
This indicated that OPEC will not move to control the price, which has outpaced weak demand. That price is bolstering the Saudi budget currently; in an effort to prevent uprisings similar to others that have occurred throughout the Middle East/North Africa (MENA) region, the Saudi government has promised $93 billion in various benefits to its citizens. A fall in oil prices would have serious impact on its budget as a result.
Reuters reported that al-Naimi gave the news in an indication that OPEC would take no action to control the price of oil. His comments about oversupply were more or less repeated by oil ministers from Kuwait and the United Arab Emirates (UAE), who also said that oil prices were out of OPEC's hands. The group does not plan to meet again till June, and have ruled out the possibility of an emergency meeting.