Mexican Media Brands
Oil Prices Weaken as OPEC Dithers Over Production
Oil futures could slide as much as 33% this autumn if the Organization of the Petroleum Exporting Countries again fail to reach agreement about reducing output, The Wall Street Journal reports.
#economics
Share
Oil futures could slide as much as 33% this autumn if the Organization of the Petroleum Exporting Countries again fail to reach agreement about reducing output, The Wall Street Journal reports.
Petroleum prices have been stuck at or below $45 per barrel for months as the cartel’s 14 members continue to disagree over schemes to curb production. Oil ministers will meet this week on the sidelines of a conference in Algiers to try again. The group’s next official meeting isn’t scheduled until the end of November.
OPEC’s ability to control oil prices has been weakened since new sources of crude, notably from U.S. shale deposits, have flooded the market. Now the group’s members fear that freezing or pumping less petroleum will only cede market share to the newcomers. Saudi Arabia, the cartel’s biggest producer, has pushed its own output to record levels in spite of low oil prices.
The Journal says the cartel is considering four options, all of them calling for members and Russia to freeze output at levels reached earlier this year. Iran is particular has resisted any move to restrict its production to pre-sanction levels. OPEC members Libya and Nigeria also have indicated they would want an exemption to a production freeze because their outputs are already below traditional norms.
RELATED CONTENT
-
Report Forecasts Huge Economic Upside for Self-Driving EVs
Widespread adoption of autonomous electric vehicles could provide $800 billion in annual social and economic benefits in the U.S. by 2050, according to a new report.
-
China and U.S. OEMs
When Ford announced its 3rd quarter earning on October 24, the official announcement said, in part, “Company revenue was up 3 percent year over year, with net income and company adjusted EBIT both down year over year, primarily driven by continued challenges in China.” The previous day, perhaps as a preemptive move to answer the question “If things are going poorly in China, what are you doing about it?, Ford announced that it was establishing Ford China as a stand-alone business unit.
-
Porsche Doubles EV Target for 2025
Porsche AG says about half the vehicles it sells by 2025 will be equipped with hybrid or all-electric powertrains, twice the ratio it forecast four weeks ago.