Oil prices decreased Tuesday after Saudi Arabia Oil Minister Ali Al-Naimi said there won't be any production cuts in the country.
"We are not banking on cuts" because there is less trust that "countries are going to deliver even if they promise," Al-Naimi said Tuesday. He also said it's not clear when the current price rout will end, but the market will eventually rebalance because high-cost producers will have to "lower costs, borrow or liquidate" to cope with the slump in oil prices.
Big oil exporters including Saudi Arabia and Russia have proposed to freeze output at January levels only if other producers join them. The West Texas Intermediate for April delivery moved down 1.52 U.S. dollars to settle at 31.87 dollars a barrel on the New York Mercantile Exchange, while Brent crude for April delivery declined 1.42 U.S. dollars to close at 33.27 dollars a barrel on the London ICE Futures Exchange.
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