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
-
Tariffs on Autos: “No One Wins”
While talk of tariffs may make the president sound tough and which gives the talking heads on cable something to talk about, the impact of the potential 25 percent tariffs on vehicles imported to the U.S. could have some fairly significant consequences.
-
On Quantum Navigation, EVs, Auto Industry Sales and more
Sandia’s quantum navi, three things about EVs, transporting iron ore in an EV during the winter, going underwater in an EV (OK, it is a sub), state of the UK auto industry (sad), why the Big Three likes Big Vehicles, and the future of logistics.
-
On Global EV Sales, Lean and the Supply Chain & Dealing With Snow
The distribution of EVs and potential implications, why lean still matters even with supply chain issues, where there are the most industrial robots, a potential coming shortage that isn’t a microprocessor, mapping tech and obscured signs, and a look at the future