Posted on 07/01/2017 7:20:28 AM PDT by Lorianne
The OPEC deal is in crisis. All oil price gains derived from the 1.2 million-barrel cuts initial announcement and implementation have been wiped out, and No. 1 OPEC producer Saudi Arabias attempt to draw down American inventories has fallen flat, due in part to insubordination from the No. 2 producer, Iraq, along with upticks in production from Nigeria, Libya, and U.S. shale.
The KSA had a clear opportunity to drastically change the direction of oil prices last month, when the Organization of Petroleum Exporting Countries (OPEC) met in Vienna to discuss the duration and scope of the output cut extension. Though Riyadh agreed to continue the deal three months longer than analysts expected (the new deal ends in March 2018, as opposed to December 2017 as many expected), the bloc leader did not heed recommendations to deepen the cuts, keeping production at 32.5 million bpd.
In addition, Nigeria and Libya got a pass that allows them to produce as much as they can for the next nine months, despite the African duos booming recovery worth hundreds of thousands of barrels.
In April and May, Saudi Arabia cut exports despite the fact that the OPEC deal does not limit export volumes. But new ClipperData says that June numbers could reveal a reversal in that downward trend, as KSA appears ready to ship more oil.
The royal family especially newly crowned heir to the throne Mohammed bin Salman needs oil prices near $60 for Saudi Aramcos 2018 IPO to generate the income it needs. At the time of this articles writing, Brent was trading up at $47.78.
(Excerpt) Read more at oilprice.com ...
Shale has neutered OPEC.
With Hillary as president, I think there would have been some “unfortunate” global crises and some “necessary” environmental regulations regarding Shale Oil and I suspect that oil would have reached the desired level of $60.
So sad that President Trump is in charge. We’re only two-thirds of the way toward making the Saudis happy. I’m weeping.
And just how are they going to finance terrorist if they gots no money? I mean the little savages might turn on them
Saudi America is kicking the shiite out of Saudi Arabia. Winning! Trump doesn’t have to get in a shooting war with China Russia (you remember them right?) and the Muslim countries; he just has to unleash the oil companies and drive oil down to $30 a barrel. That will flatten them.
Saudi America is kicking the shiite out of Saudi Arabia. Winning! Trump doesn’t have to get in a shooting war with China Russia (you remember them right?) and the Muslim countries; he just has to unleash the oil companies and drive oil down to $30 a barrel. That will flatten them.
Upon issue, foreign held shares should be sized and the purchasers charged with theft by receiving stolen property, with the funds turned over to the American taxpayers who took the hit when the Saudis effectively seized the company from its US based owners.
$30/bbl will destroy American oil companies and put thousands of people out of work. Is that what you really want?
Shale has neutered OPEC. ....
Part of the wound was self inflicted.
“...put thousands of people out of work.”
Isn’t that what the clean energy folks want anyway??
Remember that one time when...
So...
Warmest Regards,
=HLPhat
{clapping}
OPEC cannot any longer substantially affect the price of oil. At $50 a barrel it is profitable for American producers to produce all the oil that is necessary to keep the price of oil at about that price. The movement of the oil price over the last year illustrates that. If Russia and OPEC were to stop selling oil the price would only briefly rise above $50 then would settle back to that level and then (in constant dollars) would gradually and consistently decline as American and other Western producers become more efficient and extractable reserves continues to increase.
All wealth in Islamdom beyond sufficient to support a teensy ruling class in splendour and the rest in bare subsistence goes to hijrah and jihad. It has been thus for fourteen centuries. There is no chance that it will change now or in the future.
So the free market be damned. We must keep prices artificially high? Have you considered the greater good to the entire country if we can subdue our enemies using our economic power rather than going to war. Maybe $30 a barrel would be too low but my point remains the same.
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