Column: The return of OPEC | Reuters:
"Two years ago, when the Organization of Petroleum Exporting Countries chose not to cut output and let oil prices collapse, many pundits penned obituaries for the producer group. Yet on Wednesday, OPEC seemed to breathe new life, agreeing to cut output 1.2 million barrels per day (bpd).
While OPEC may have been hibernating, the decision by Saudi Arabia, OPEC’s leading member, to let oil prices crash was always a pragmatic one, not an ideological one. OPEC has sent stark reminder that when circumstances change, it can change too -- and it would be foolish to write off OPEC as irrelevant.
In November 2014, U.S. shale oil output had been rising annually by around 1 million bpd, a stunning rate of growth. High and stable prices had pushed hundreds of billions of dollars into developing high cost sources of supply from the Arctic to the ultra-deepwater to the oil sands.
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