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Home/ CULF 3331: "Middle Eastern Revolutions"/ Contents contributed and discussions participated by wmulnea

Contents contributed and discussions participated by wmulnea

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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

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.
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