DW

Can OPEC Halt An Oil Market Meltdown?

Recommended Posts

Nick Cunningham always has a few nuggets in his articles:

Can OPEC Halt An Oil Market Meltdown?

excerpt

Because non-OPEC production (i.e. U.S. shale, Canada, and Brazil) will grow rapidly over the next few months, the IEA says that inventories could build at a rate of 2 mb/d in the first half of 2019. That goes a long way to explaining the recent meltdown in oil prices.

But that also is a baseline assumption that does not take into account any production cuts from OPEC+, which at this point, is almost certainly in the offing. The only question is by how much the group will be reducing. Saudi Arabia said that it alone would slash 500,000 bpd in December. Russia was a bit more non-committal in recent days, but the utter meltdown in prices on Tuesday – down 7 percent – could spur a more concerted effort.

  • Like 1

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
You are posting as a guest. If you have an account, please sign in.
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.