Mexican Media Brands
OPEC’s Output Rises in Spite of Oil Quotas
Oil production by the Organization of the Petroleum Exporting Countries rose by nearly 33 million barrels per day from May to June, according to the cartel’s monthly market report.
#economics
Share
Oil production by the Organization of the Petroleum Exporting Countries rose by nearly 33 million barrels per day from May to June, according to the cartel’s monthly market report.
The 1% increase comes more than six months into OPEC’s struggle to maintain a self-imposed output reduction of 1.8 million bpd, or roughly 2% of normal production. The cartel sources about 40% of global petroleum. But traders have become increasingly doubtful about the cartel’s ability to influence oil supplies or prices.
OPEC wants to reduce global oil inventories to stabilize oil prices. But oil shale producers in North America have stepped in to keep supplies high. Oil futures remain below $55 per barrel, less than half their price three years ago.
OPEC insists its efforts to lower oil inventories is slowly bringing the market back to balance. But the Paris-based International Energy Agency predicts the next six months will be “very difficult” for the oil industry.
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.
-
Enterprise Edges into Self-Driving Car Market
U.S. rental car giant Enterprise Holdings Inc. is the latest company to venture into the world of self-driving vehicles.
-
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.