How OPEC decision to hold production is a good news for oil importing nations?
The OPEC (Organization of the Petroleum Exporting Countries) decision to holds production is a good news for oil importing nations and consumers and industries. It will create a balance that likely will help push prices down. Enough to help sustain the world’s struggling economic recovery.
OPEC produces roughly a third of the world’s oil supply, so its output-policy decisions can sometimes roil world oil markets and create ripple effects into other asset classes. Oil prices remain in the $100 a barrel range, a high level that drew a renewed warning Wednesday from consumers that OPEC needs to keep pumping at current levels or boost output.
The Vienna-based organisation, which supplies a third of the world’s crude, has had an output target of 24.84 million barrels per day (mbpd) for three years.
The 12-member cartel may decide to trim its actual production, which stands above the agreed ceiling, as OPEC hawks Venezuela and Iran seek to keep oil prices high.
The International Energy Agency (IEA) said Tuesday that OPEC in fact produced 30.68 mbpd last month as the cartel’s kingpin Saudi Arabia pumped out extra crude despite Libya making progress towards returning to pre-war output.
The IEA’s OPEC output estimate includes crude supply from Iraq, which is not part of the cartel’s official production quota because of unrest in the country.
OPEC (Organization of the Petroleum Exporting Countries) member nations could fill their treasuries quickly if crude prices remained well above $100. That would be true in the short run. But high oil prices might help trigger a new recession.
DON’T MISS: Hit List
Oil demand will not grow- Organization of the Petroleum Exporting Countries (OPEC)
The Organization of the Petroleum Exporting Countries (OPEC) said demand for crude oil would grow by 1.12 per cent, only 0.06 percentage points higher than the previous assessment, global oil demand w…
Reason why Russia should not join OPEC Oil cartel?
As OPEC is getting ready for a huge decrease in production and they realize that they need Russia (the world’s largest oil producer and second largest exporter) to help out. OPEC has invited Russia t…
What is OPEC oil Output or production cut; how it affcets us?
Organization of Petroleum Exporting Countries (OPEC) is greedy! At a time when there is a global economic crisis, they want to squeeze everyone and force people in Africa and other poor nations to be …
Economic crisis and earnings may cause more Shipping Bankruptcy Filing- OSG, NAT, FRO, NM, DRYS, GMR, ONAVQ, TNK
Low shipping rates may cause more Bankruptcy Filing even some ship owners are now considering to sell their ships for as low as scrap value, Alaric Nightingale suggest The cost of 15-year-old tankers …
Why Kodiak Oil & Gas raised the size of its stock offering?
Kodiak Oil & Gas Corporation (NYSE: KOG) raised the size of its stock offering, from 37,500,000 shares to 42,000,000 shares of common stock at a public offering price of $7.75 per share. Company a…
About Us
Advertise with us
Become a Contributor
Contact Us
Email Newsletters and RSS Feeds
Job Opportunities
Magazine Subscription
Staff and Contributors
