2009-01-26 11:23:39 - "Asia Pacific": Saudi Arabia to set example for OPEC by cutting production further.

Asia Pacific is thought to be expecting attempts by Saudi Arabia to unilaterally influence oil prices to fail.

The country, the world's largest exporter of crude oil, is attempting to set an example to fellow OPEC members who have not cut production as much in the face of a slide in oil prices that has persisted for the last 6 months.

Those familiar with analysts at Asia Pacific say the firm believes that the move is likely to fail because the remaining 10 OPEC members may not be able to afford to cut production significantly when they need as much revenue as possible to deal with their own economic issues.

An unnamed Asia Pacific source said that the cartel has not been able

to arrest the decline in oil prices despite the deepest production cuts in its history so it should wait until the markets begin to focus on the supply side dynamics of the world's most precious commodity.

A number of analysts, including those at Asia Pacific, suggest that the price could touch $25 a barrel before rising quickly to $100 a barrel by the third quarter of 2009.