As the US second and tougher sanctions on Iran approach (Nov 4th), many countries have begun to reduce their purchases of Iranian oil and its exports have already dropped one million barrels a day (from a high of 2.7 Million bpd to 1.7 Mill bpd in August 2018). Continue reading “OPEC’s Current Dilemma”
Oil prices have risen rapidly this year and are expected, by some, to head higher – possibly towards US$ 100 per barrel. This is alarming to many, who consider such a rise as devastating to the economic growth prospects of many countries. Hence, the panic and scramble to do something, regardless of how effective it would be. Continue reading “OIL PRODUCERS AND CONSUMERS ARE THE FINAL LOSERS”
The Oil Wolves are at the Gates
Before the ink was dry on the OPEC production accord, the Shale oil producers pounced on the futures market, selling forward all or a big part of their 2017 and 2018 production. The prices they sold at were above US 55 per barrel, and possibly near $ 60. (Actually, they had started selling Continue reading “The Oil Wolves are at the Gates”
OIL PRICE – WHERETO?
OPEC announced on Nov 30, 2016 an agreement to cut its total oil production by 1.2 Million barrels per day to bring it to 32.5 mill b/d, as off Jan 2017. Overnight, Brent oil price spiked by 9% to around US$ 52. The next step is for OPEC to obtain and extra reduction of 600,000 b/d from Non-OPEC producers. Continue reading “OIL PRICE – WHERETO?”