Oil prices spiked on Monday after Russia and Saudi Arabia agreed
RT: What can the two countries do to stabilize prices?
Jim Rogers: The Saudis have made it clear they don’t want to cut production and they are right, in my view. I am not Saudi Arabian so I can’t tell them what to do. The Russians want to cut production, that’s not what I would do. I would let the market play itself out. It is taking a
RT: People are trying to steady the oil market. A couple of countries are discussing freezing output. But if they freeze output to summer levels, that would ensure the continued flooding of the market and continued low prices, yes or no?
JR: Yes, you are making my case. Why bother? Let the market sort it out. The market is sorting it out. The Canadian oil sands cannot make money right now. The
RT: Russia was severely hit by the falling prices, but Saudi Arabia now is trying to make some moves for some sort of sense of normality. What’s prompting Riyadh to make moves these days?
JR: Saudi Arabia is running out of money, too. You may know they just borrowed huge amounts of money. They have a gigantic budget. They are keeping a lot of people on the payroll in Saudi Arabia… But that’s good because that forces the market to adjust eventually. But in the meantime, Saudi Arabia is suffering, Venezuela, Nigeria, Kazakhstan, Russia, they all are suffering. But it will come back.
- Source, Russia Today