A former Opec insider tells how global oil pricing got flipped on its head | The National:
"From 2004 to 2008 and 2010 to 2014, oil production and prices both rose. The price increases were completely divorced from the market principle of a supply-demand balance. In the middle of 2014, the price momentum ran out of steam and prices began sinking in a bog of unconsumed, overproduced, expensive new oil.
That market disorder should have been a reason for concern. Unfortunately, greed suppressed the voices that raised the alarm and warned of the long-term dangers of short-term gains.
Today, the producers who used to be price setters through supply control can produce only what costs less than the market price, which they no longer influence. Things will become normal only when we have the horse back before the cart."
'via Blog this'
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