"The price of oil above $100 is artificial," he said. "It's not correct."
That's in an interview with for USA Today, in which the business magnate blamed oversupply and weak demand for the recent drop in oil prices.
He also predicted hard times ahead for America's shale-oil and gas industries.
"No one knows for sure what price is the breaking point for shale," he said. "Wells have a higher production cost. And very clearly these will run out of business, or at least not be economical."
Back in November, OPEC announced its controversial decision not to cut oil production despite falling prices. This was seen as a call made by Saudi Arabia, despite objections from other OPEC nations that are losing money at current price levels. Some speculated this was Saudi Arabia going after Iran and Russia. Others speculated that it was a move to take market share from US shale producers, which have relatively high breakeven drilling costs.
The prince, who has made his billions on investments in Saudi Arabia, the United States, and around the world, openly disagrees with his government on most issues. But when it comes to the kingdom's recent oil policies, he said, "the decision to not reduce production was prudent, smart and shrewd."
He said Saudi Arabia could not trust other oil-producing countries – in OPEC or otherwise – to adhere to any sort of agreement to cut production, which is why the government made the decision it did.
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