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wmulnea

Saudis block OPEC output cut, sending oil price plunging | Reuters - 0 views

uk.reuters.com/...-meeting-idUKKCN0JB0M420141127

shared by wmulnea on 05 Feb 15 - No Cached
  • This outcome set the stage for a battle for market share between OPEC and non-OPEC countries, as a boom in U.S. shale oil production and weaker economic growth in China and Europe have already sent crude prices down by about a third since June.
  • Saudi Arabia blocked calls on Thursday from poorer members of the OPEC oil exporter group for production cuts to arrest a slide in global prices, sending benchmark crude plunging to a fresh four-year low.
  • "It is a new world for OPEC because they simply cannot manage the market anymore. It is now the market’s turn to dictate prices and they will certainly go lower," said Dr. Gary Ross
  • ...6 more annotations...
  • and Algeria had calling for output cuts of as much as 2 million bpd.
  • The wealthy Gulf states have made clear they are ready to ride out the weak prices that have hurt the likes of Venezuela and Iran
  • hoped that lower prices would help drive some of the higher-cost U.S. shale oil production out of the market.
  • The Organization of the Petroleum Exporting Countries accounts for a third of global oil output.
  • A price war might make some future U.S. shale oil projects uncompetitive due to high production costs, easing competitive pressures on OPEC in the longer term.
  • "We interpret this as Saudi Arabia selling the idea that oil prices in the short term need to go lower, with a floor set at $60 per barrel, in order to have more stability in years ahead at $80 plus," said Olivier Jakob from Petromatrix consultancy.
  • wmulnea on 05 Feb 15
     
    This article suggests that OPEC is losing control of global oil prices. The article addresses budget considerations for smaller OPEC producers, like Venezuela, and the battle over market share between OPEC and gulf producers.
wmulnea

Energy & Financial Markets - U.S. Energy Information Administration (EIA) - U.S. Energy... - 0 views

www.eia.gov/...supply-opec.cfm

shared by wmulnea on 05 Feb 15 - No Cached
  • wmulnea on 05 Feb 15
     
    This U.S. government report examines OPEC's role in setting global oil prices. Specifically, the report documents the effect of OPEC's "spare capacity" on oil prices. The report suggests that OPEC uses its spare capacity to manage oil prices on the global market.
wmulnea

OPEC and oil prices: Leaky barrels | The Economist - 1 views

www.economist.com/...dermining-cartel-leaky-barrels

shared by wmulnea on 05 Feb 15 - No Cached
  • OPEC, which produces about a third of the world’s daily consumption of 90m barrels of crude oil
  • cartel
  • anti-glut group
  • ...6 more annotations...
  • the country will produce 14m barrels a day (b/d) next year, on a par with Saudi Arabia
  • Iraqi oil exports, stricken by the war and its aftermath, are also set to increase.
  • Libya could be another source of production: its exports have collapsed to only a few hundred thousand barrels a day, against 1.6m in June last year.
  • OPEC’s best hope is continued American protectionism. Any easing of the restrictions on the export of liquefied natural gas (LNG) or crude will exert more downward pressure on the oil price.
  • But that would cede market share to their hated rivals, Iran and Iraq.
  • America’s domestic production of crude (and gas, which displaces some oil) is rocketing.
  • wmulnea on 05 Feb 15
     
    This article briefly addresses the current global petroleum market, outlining the top national producers and their current import/export strategies. The article is a good overview of the global politcs affecting oil prices.
stuartsayes

The Importance of the Suez Canal - 0 views

america.aljazeera.com/...-attack-foiledinsuezcanal.html

Egypt canal middle east shipping Suez Canal

shared by stuartsayes on 25 Apr 16 - No Cached
  • stuartsayes on 25 Apr 16
     
    An article published by Al Jazeera reports an attack on a container ship that was passing through the Suez Canal around the date September 1, 2013. Though the attack was unsuccessful, this article exemplifies the importance of the Suez Canal to the global markets and documents the presence of active security by the Egyptian armed forces along the canal.
wmulnea

The 1973 Arab Oil Embargo: The Old Rules No Longer Apply : Parallels : NPR - 0 views

www.npr.org/...-the-old-rules-no-longer-apply

shared by wmulnea on 23 Feb 15 - No Cached
  • wmulnea on 23 Feb 15
     
    NPR examines the history of the 1973 oil embargo and the differences in the global oil market forty years later. The article cites Gal Luft and Anne Korin, suggesting that the U.S. policy of reducing dependence on Middle East oil is "faulty."
amarsha5

How long can Saudi Arabia afford Yemen war? - Al-Monitor: the Pulse of the Middle East - 14 views

www.al-monitor.com/...ia-economic-repercussions.html

saudi yemen war economics

shared by amarsha5 on 07 Apr 16 - No Cached
  • long history of political animosity; this is a history that continues until our present day.
    • joepouttu
      joepouttu on 07 Apr 16
       
      "However, as Saleh continued to kill, these countries had no choice but to issue a forceful declaration to show that they were not in favor of Saleh's relentless, murderous campaign to ignore a civil war in Yemen." pg 128
  • Yemen's treasury was burdened by the costs of unification such as paying for southern civil servants to move to the new capital, Sanaa, and paying interest on its massive debt. On top of its other economic challenges, Yemen was to absorb the shock of 800,000 returnees and their pressure on the already weak job market. With their return, the estimated $350 million a month in remittances
    • joepouttu
      joepouttu on 07 Apr 16
       
      "My father had decided to leave Eritrea and return to Yemen, his homeland, after long years of exile..." pg 110
  • Civil war broke out in the summer of 1994 in what could be interpreted as a symptom of economic failure.
  • ...20 more annotations...
  • By 1995 the Yemeni government implemented a program of macroeconomic adjustment and structural reforms with support from the World Bank and the International Monetary Fund and reduced spending on defense and civil service and cut subsidies. The Yemeni economy started showing signs of recovery and stability.
  • Masood Ahmed, director of the IMF’s Middle East and Central Asia Department, wrote in 2012 that “fiscal sustainability will be an issue” for Gulf Cooperation Council countries. In its 2012 regional economic outlook, the IMF recommended to “curtail current expenditures while protecting the poor” as a response to the risk of declining oil prices.
  • Policies to cut spending were unlikely to be introduced in a monarchy like Saudi Arabia, especially after the Arab Spring, where tax-paying citizens along with non-tax-paying Bahrainis and next-door Yemenis went out on the streets to claim their rights in shaping the policies that govern their daily lives. The risk of people demanding more political rights was growing and cutting spending was not the optimal strategy for the kingdom.
    • joepouttu
      joepouttu on 07 Apr 16
       
      "The students of Sanaa were unique, marching straight out onto the street from their classrooms and chanting, 'The people demand the fall of the President and the regime.'" pg 126
  • As the kingdom continued its generous fiscal policy by providing more benefits to its citizens in response to the people’s dissatisfaction with the economic and political situation, it ran a deficit of 3.4% of GDP in 2014 due to a fall in oil revenues.
  • The kingdom's economic reforms of raising gas and diesel prices, cutting fuel subsidies in half and supporting the introduction of a GCC-wide value-added tax might ease the pressure of sustaining a war for nine months and perhaps longer. These structural reforms were long overdue and their introduction at this time is revealing.
    • amarsha5
      amarsha5 on 07 Apr 16
       
      CIG pg. 120 -> "We live in a world with many layers of linkages between countries. Nations will exchange goods and services through trade and will engage in cross-border investments from bank loans to setting up businesses. Each of these linkages can serve as a transmission mechanism in a time of crisis."
  • the political inclusion of the taxpaying citizen. It's a price the kingdom is now willing to pay, as we have seen Saudi women not only
  • and suffered an uprising fueled by anger at economic failure. The Saudi economy is trying to absorb
  • As they introduce revenue-collecting mechanisms, they should also reform mechanisms of capital transfer to the public to minimize the gap between the rich and the poor, as it is known that the poor are the most affected by tighter revenue-collecting policies. Otherwise, the Saudi war on Yemen will mark the beginning of an economic downturn that will surely spill over onto its political system in the long run.
    • joepouttu
      joepouttu on 07 Apr 16
       
      "So the young revolutionaries fight on, until all their demands are met and they are free to build their State: a state founded on social justice and equality between all citizens where Saleh's reign is just a page in the history books." pg 129
    • amarsha5
      amarsha5 on 07 Apr 16
       
      CIG pg. 116 -> "Globalization, in the shape of freer trade and multinational investments, has been generally a force for good and economic prosperity. But it has also advanced, rather than harmed, social agendas"
    • ccfuentez
      ccfuentez on 07 Apr 16
       
      But it became apparent that Saleh was not going to leave me to my own devices. He declared war in mid-1994, occupying the South and defeating the Socialist Party. Everything was finished, or so I believed. Its property stolen by the regime, the paper shut down, and once more I found myself broken, defeated and without hope. Worse, I was a known employee of the Socialist Party through my work at the paper. In the region where I lived agents for the regime had been hunting down and detaining anyone who had belonged to the Socialist Party or getting them fired from their jobs. Although I had not been a party member myself, just worked at a party newspaper, the regime made no distinction. My mother intervened, however, and hid me. She wouldn't let me out of the house. My mother always protects me.   (2013-12-31). Diaries of an Unfinished Revolution: Voices from Tunis to Damascus (p. 115). Penguin Publishing Group. Kindle Edition. 
    • atownen
      atownen on 07 Apr 16
       
      Civil War: in 1994 Jamal currently in high school, describes the times as a world, when the color of his skin would define him. The Civil War, "interpreted as a symptom of economic failure", was evident in the reading when Jamal described the lack of jobs as a college graduate, members of the socialist party were completely shut out when Saleh took the presidency, depriving hard workers the ability to integrate into the economy. 
    • ccfuentez
      ccfuentez on 07 Apr 16
       
      CIG Ch. 4 -> in relation to international rulemaking on fiscal policy -> is international intervention needed to contain and reverse financial crises in countries, esp. when it comes to the human rights and economic equality of citizens
    • mcooka
      mcooka on 07 Apr 16
       
      Relating to page 120 Sanaa could not find work after college. While his degree wasn't very fluid, he was unable to find work for about 5 years. He got into journalism which blacklisted him against the government. Now he is unemployed again. 
    • mcooka
      mcooka on 07 Apr 16
       
      This paragraph, while not highlighted, is important to the idea of globalization and why the war is not stopping. There is a flow of revenue from these oil prices that Yemen is reliant on, but they are also competing with countries that produce higher amounts of oil. This would have happened during the time Sanaa was in College writing scathing articles
    • mcooka
      mcooka on 07 Apr 16
       
       On page 113 around this time the author was working as a journalist for the newspaper. 
    • mcooka
      mcooka on 07 Apr 16
       
      Related to page 129 Sanaa is still living in hiding and in poverty. The animosity keeps him in fear. 
    • csherro2
      csherro2 on 07 Apr 16
       
      Market liberalization outlook
    • csherro2
      csherro2 on 07 Apr 16
       
      When Saleh came to power he and the leader of the southern part of Yemen, Salem al-Beid, agreed to coesxist as leaders of Yemen.  WIthin weeks of this in play, Saleh began to try to make the south his and this created the civil war.  
    • csherro2
      csherro2 on 07 Apr 16
       
      Jamal notes that the standard of living in Yemen was decreasing gradually the longer Saleh stayed in power.  
    • csherro2
      csherro2 on 07 Apr 16
       
      People, including Jamal, were writing about the Saleh regime and how they were upset with them.  
    • csherro2
      csherro2 on 07 Apr 16
       
      When Saleh's son was coming into power, Jamal saw that Yemen was moving towards a monarchy, realizing that his and the country's future was in the hands of an unqualified person.  
mcooka

Gender equality? It doesn't exist anywhere in the world - LA Times - 1 views

www.latimes.com/...lobal-womens-rights-story.html

women inequality million higher education

shared by mcooka on 08 Mar 16 - No Cached
  • t's been more than 100 years since the world began observing International Women's Day, and yet no country has achieved full gender equality.
  • But in Yemen, the country that ranks lowest according to the same data,
  • About two-thirds of countries in the developing world have achieved gender equality in primary education according to U.N. data, but the progress is less substantial at the secondary school level.
  • ...9 more annotations...
  • In Africa and South Asia for example, boys remain 1.55 times more likely to complete secondary education than girls, according to World Bank data.
  • Even when girls make it into the classroom they still “continue to face particular risk in chaotic conflict settings,”
  • n Pakistan, for example, the Taliban has declared war on girls' education, and frequently attacks educational institutions
  • “They don’t translate into greater equality in the labor market,” said Sarah Gammage, director of gender, economic empowerment and livelihoods at the International Center for Research on Women. “Around the world women have disproportionately been part of the informal economy.”
  • hey are typically responsible for providing care services for family members, Gammage said. Other duties include child rearing, cooking, and other household chores. It is work for which they are not paid. Women perform three times more unpaid work than men, according to the U.N.’s 2015 Human Development Report.
  • eing able to make decisions, such as voting, owning land, and deciding whom to marry “is where we see the most significant difference between the least developed and developed countries,” said Varia.
  • In Saudi Arabia, women are not permitted to drive and cannot open bank accounts without their husbands' permissio
  • Uganda forbids women to gain permanent custody of children after a divorce,
  • Honor killings, the traditional practice that allows the slaying of a family member who is believed to have brought dishonor on a family, claims thousands of women’s lives every year in South and Central Asia.
  • pvaldez2 on 08 Mar 16
     
    This article is a response to International Women's Day, saying that gender equality doesn't exist in the world. In the middle of the article, they show a chart of the gender gap between men and women. Egypt is last in the chart.
  • mcooka on 08 Mar 16
     
    This article goes into depth about the inequality in the Middle East which extends to today. This looks at the ideas of democratization which would promote higher education. Greater rights for women. and improve infant morality rates 
wmulnea

BBC News - Falling oil prices: Who are the winners and losers? - 0 views

www.bbc.com/...business-29643612

shared by wmulnea on 13 Feb 15 - No Cached
  • The reasons for this change are twofold - weak demand in many countries due to insipid economic growth, coupled with surging US production. Added to this is the fact that the oil cartel Opec is determined not to cut production as a way to prop up prices.
  • Russia loses about $2bn in revenues for every dollar fall in the oil price,
  • Russia has confirmed it will not cut production to shore up oil prices.
  • ...12 more annotations...
  • Venezuela is one of the world's largest oil exporters, but thanks to economic mismanagement it was already finding it difficult to pay its way even before the oil price started falling.
  • Saudi Arabia, the world's largest oil exporter and Opec's most influential member, could support global oil prices by cutting back its own production, but there is little sign it wants to do this.
  • There could be two reasons - to try to instil some discipline among fellow Opec oil producers, and perhaps to put the US's burgeoning shale oil and gas industry under pressure.
  • Saudi Arabia needs oil prices to be around $85 in the longer term, it has deep pockets with a reserve fund of some $700bn - so can withstand lower prices for some time.
  • were to force some higher cost producers
  • In the 1980s the country did cut production significantly in a bid to boost prices, but it had little effect and it also badly affected the Saudi economy.
  • Saudi Arabia, Gulf producers such as the United Arab Emirates and Kuwait have also amassed considerable foreign currency reserves, which means that they could run deficits for several years if necessary.
  • Islamic State, capturing oil wells. It is estimated it is making about $3m a day through black market sales - and undercutting market prices by selling at a significant discount - around $30-60 a barrel.
  • "The growth of oil production in North America, particularly in the US, has been staggering," says Columbia University's Jason Bordoff.
  • It has been this growth in US energy production, where gas and oil is extracted from shale formations using hydraulic fracturing or fracking, that has been one of the main drivers of lower oil prices.
  • "Shale has essentially severed the linkage between geopolitical turmoil in the Middle East, and oil price and equities," says Seth Kleinman, head of energy strategy at Citi.
  • With Europe's flagging economies characterised by low inflation and weak growth, any benefits of lower prices would be welcomed by beleaguered governments. A 10% fall in oil prices should lead to a 0.1% increase in economic output, say some. In general consumers benefit through lower energy prices, but eventually low oil prices do erode the conditions that brought them about.
eyadalhasan

Saudi Arabia's Key to Security Is Not the Sword - 0 views

www.hrw.org/...arabias-key-security-not-sword

Saudi execution ISIS

shared by eyadalhasan on 01 Apr 16 - No Cached
  • eyadalhasan on 01 Apr 16
     
    Saudi Arabia's mass execution of 47 people on January 2 was a bloody emblem in the country's self-marketing as a leader in the global campaign against ISIS and other armed extremist groups. But it was also a stark example of what Saudi Arabia, and many other countries, are getting wrong in that effort.
wmulnea

Isis threatens future oil supplies, warns IEA - FT.com - 0 views

www.ft.com/...59-11e4-a1a9-00144feabdc0.html

shared by wmulnea on 02 Mar 15 - No Cached
  • Mr Birol said instability in the Middle East, and especially in Iraq, had “major implications” for oil markets.
  • Iraq has the world’s third-largest reserves of conventional oil
  • the government in Baghdad and the Kurdistan Regional Government in Erbil, which are usually at loggerheads, this month agreeing a temporary deal for crude exports and revenue sharing
  • ...4 more annotations...
  • Iraq’s oil production has fallen only 10 per cent this year.
  • the rapid ascent of Isis has raised questions about the country’s security, adding to international companies’ concerns about regulatory, environmental and budget problems.
  • Poor roads and transport infrastructure were adding to security concerns and hence costs, he added.
  • Mr Birol said it was highly unlikely that US crude production could meet the expected increase in global demand, even if shale oil production continued to outpace forecasts as it has done in recent years.
wmulnea

The new economics of oil: Sheikhs v shale | The Economist - 0 views

www.economist.com/...es-will-go-bust-market-will-be

shared by wmulnea on 23 Feb 15 - No Cached
  • The contest between the shalemen and the sheikhs has tipped the world from a shortage of oil to a surplus.
  • Big importing countries such as the euro area, India, Japan and Turkey are enjoying especially big windfalls. Since this money is likely to be spent rather than stashed in a sovereign-wealth fund, global GDP should rise.
  • There will, of course, be losers (see article). Oil-producing countries whose budgets depend on high prices are in particular trouble. The rouble tumbled this week as Russia’s prospects darkened further. Nigeria has been forced to raise interest rates and devalue the naira. Venezuela looks ever closer to defaulting on its debt
  • ...1 more annotation...
  • But Saudi Arabia, in particular, seems mindful of the experience of the 1970s, when a big leap in the price prompted huge investments in new fields, leading to a decade-long glut.
  • wmulnea on 23 Feb 15
     
    This article suggests that increased shale oil production is changing the economy of oil, but at the same time Saudi Arabia is reluctant to slow OPEC production.
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