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wmulnea

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

  • 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.
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    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.
aavenda2

Saudi Arabia was worried about a danger much bigger than shale when it blindsided oil m... - 0 views

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    This article talks about the strategical approaches from Oil leaders including Saudi Arabia to maintain control of their market share, and how they use their oil as a "Weapon" in the sense that their decisions financially affect other countries greatly.
wmulnea

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

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    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.
kbrisba

The Arab Spring's success story: what will it take for Tunisia to unlock its full ... - 0 views

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    Tunisia kicked off investor meetings for a Eurobond without US guarantees. Tunisia's stock market has already shown political stability. Tunis index rose more than 16 percent in 2014 and trades 10 percent below record highs hit before the Arab Spring. Tunisia has potential to reform but it is in need of foreign direct investment to drive economic growth and job creation. Tunisia signed a two year deal with the international Monetary Fund in 2013, agreeing to follow certain economic policies; keeping its deficit under control, making the foreign exchange market more flexible and structural reforms.
aavenda2

Iran's return to market to delay oil price recovery | Economy | Saudi Gazette - 0 views

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    Iran's return in the oil market leads to new consequences for current producers, and consumers of oil. Including Saudi Arabia
malshamm

Iran set to negotiate on oil market with Saudi Arabia - Al Jazeera English - 0 views

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    iran plans to sit with saudi arabia to negotiate oil market which hurt iran economic after lowing the price from saudi side.
wmulnea

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

  • 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.
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    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.
ralph0

Healthcare Reform | Donald J Trump for President - 0 views

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    Completely off topic regarding the Middle East. However, the proposed plan is in line with market liberalization. Since we just covered that in class, and this applies perfectly, I figured I would save it.
cthomase

Four Libya oilfields close, workers strike in a fifth - 1 views

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    In response to terrorism fears, 5 oilfields in Libya are not in operation. The oil market in Libya, which has the potential to be one of the highest producing markets in the world, has been under siege since the fall of Qaddafi over 5 years ago. Securing these oilfields should be the top priority for the new unity government if it is ever installed.
stuartsayes

The Importance of the Suez Canal - 0 views

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    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.
micklethwait

Why are there no Muslim philosophers? - Opinion - Al Jazeera English - 0 views

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    Interesting take on what it means to be Muslim and do anything. Is philosophy Western? Is a Muslim philosopher not a philosopher if he or she doesn't practice philosophy in a Western language, publish in Western markets, or work in a Western institution?
katelynklug

BBC News - Egypt's youth: "What has the revolution done for us?" - 0 views

  • You don't feel safe or secure anymore
  • given up
  • square is virtually empty
  • ...14 more annotations...
  • faces of dead people
  • Most of the faces on the wall are those of young people
  • Women have stopped coming to Tahrir now
  • sexual harassmen
  • "One hundred per cent, I regret it"
  • Nothing has happened. Everything's changed for the worse.
  • I don't regret my decision
  • deteriorating economy
  • increasingly hard to live
  • mass unemployment is the most pressing and it is the young who are hit the hardest
  • Half of Egypt's population is below 24 years old
  • not using this youth and energy to its benefit
  • don't have enough skills
  • has to create between 800,000 and a million jobs a year
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    This article gives a description of the state of Egypt's once thriving Tahrir Square, just two years after the revolution. The mood of Tahrir Square has changed dramatically and is now solemn rather than buzzing with enthusiasm. The young activists interviewed in the article expressed their regret for the revolution or how it turned out. The youth population is still struggling for economic revival after two years of revolution. Mass unemployment is hitting the large youth population the hardest, which is still a source of anger. The majority of this population does not have adequate skills for the available job market.
wmulnea

AS Macro Key Term: Spare Capacity | tutor2u Economics - 0 views

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    Geof Riley explains the term "spare capacity" at a macro-economic level. This brief article explores the pros and cons of producing a product "below the maximum sustainable level of production," and helps to explain why the term is so prevalent in the petroleum market.
aavenda2

The most important thing to understand about the coming oil production cutbacks - 1 views

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    The United States and Canada are cutting back on oil production beginning 2015. The high cost of production in the two countries does now allow it to compete with Saudi Arabia oil and other countries with lower costs as market prices begin to fall
wmulnea

New Attacks on Libya's Oil Fields Shake Nation's Stability, Energy Markets - WSJ - 0 views

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    Another article addressing the recent destruction of Libyan oil fields, the Wall Street Journal points a more direct finger at the Islamic State. This article suggests that militant groups do not have the expertise to take advantage of the oil fields themselves,; therefore, they destroy the oil fields in an attempt to keep rival political factions from using the oil fields to their advantage.
nicolet1189

How ISIS Games Twitter - The Atlantic - 1 views

  • strong, organic support online.
  • strategies that inflate and control its message.
  • using social media to recruit, radicalize and raise funds,
  • ...9 more annotations...
  • Twitter app called The Dawn of Glad Tidings, or just Dawn.
  • way to keep up on the latest news about the jihadi group.
  • Once you sign up, the app will post tweets to your account
  • spaced out to avoid triggering Twitter’s spam-detection algorithms
  • organized hashtag campaigns
  • repetitively tweet hashtags at certain times of day so that they trend on the social network. 
  • ISIS hashtag consistently outperforms that of the group’s main competitor in Syria, Jabhat al-Nusra, even though the two groups have a similar number of supporters online.
  • ISIS also uses hashtags to focus-group messaging and branding concepts, much like a Western corporation might.
  • ISIS does have legitimate support online—but less than it might seem.
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    Author J.M. Berger discusses ISIS's strategy on Twitter, comparing their highly skilled techniques on this platform to the likes of a P.R./ marketing team working for a Western corporation. Berger goes on to discuss programs that automatically post tweets to users accounts, an app they developed that provides updates, and an intricate system able to surpass Twitter's spam and security teams.
wmulnea

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

  • 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.
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