Former Saudi Oil Minister Sheikh Ahmed Zaki Yamani expects crude oil prices to continue to drop on lower consumption, he told Corriere della Sera in an interview published in its Internet edition Tuesday.
"With the recession making a foray in developed countries, the price of crude oil has to drop because consumption falls," he was quoted by the paper as saying.
However, with OPEC members calling for a cut in production, prices could bounce back again and if so will exacerbate an already worrisome outlook for economic recessions, he added. Yamani explained that Iran, Venezuela, Libya, Algeria and even Nigeria are pressuring Saudi Arabia to cut oil production.
"If Riyadh resists, there'll be no cuts and (oil) prices will decline," he told Corriere.