GO
Loading...

Jeddah Oil Meeting Achieved 'Absolutely Nothing'

The token gesture of Saudi Arabia committing to raise oil production meant nothing to the futures market and crude prices will just continue to climb, an energy analyst told CNBC Europe Monday.

At a meeting of oil producers and policy makers at Jeddah, Saudi Arabia promised to boost current production to 9.7 million barrels per day (bpd) and also outlined a plan to bring total production capacity up to 15 million bpd in the future.

But that did nothing to cool prices, with New York light crude futures rising more than 1.6 percent in early-morning trading.

"The only thing that's been achieved from this meeting is that we have a clear path to $150 and beyond," Stephen Schork, editor of energy publication The Schork Report, told "Squawk Box Europe."

"Why did we even have this quote-unquote oil price summit?" Schork said. "The Saudis didn’t tell us anything we didn't already know."

"My fear is now that OPEC, or specifically the Saudis, has not given this market a reason to sell, and with the amount of speculation in this market we now have every reason to go back in and start buying this market now," he said.

Any news that may help ease oil prices is being "shrouded by the fact that nothing has come out of Jeddah," Rob Laughlin, senior broker at MF Global, said.

"Kuwait (and the) UAE had ample opportunities to join the Saudi political move to give us a bit more (oil) and they failed," Laughlin said.

Contact Oil and Gas

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    › Learn More*