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Oil prices continue to collapse and OPEC intensify consultations
13/01/2015
Vary expectations regarding the implications of the collapse of oil prices on economic growth rates in light of the apparent vulnerability budgets producing countries and a slight recovery of the markets consuming countries over the past months.
Price recorded Tuesday a new low level is the weakest in nearly six years with falling price of a barrel of Brent crude to less than $ 46 to about $ 45 a barrel for US crude. Although some of the Member States of the Organization of Petroleum Exporting Countries official statements (OPEC) that the organization will not change its strategy productivity, leaving the market to determine prices have seen the last few hours of intensive consultations pointing to possible changes in the strategy.
President of Venezuela Nicolas Maduro arrived Monday night to Algeria to visit during which he announced that he would hold talks with his counterpart Abdelaziz Bouteflika for "consultations" between the two countries in the two activists (OPEC) on the price crisis.
OPEC logo OPEC logo
The Maduro Sunday visit Saudi Arabia after talks in Iran, such as Venezuela, which suffers from the collapse of oil prices. In the latest statement made by Tuesday (January 13), Iranian President Hassan Rohani said the countries behind the drop in world oil prices will regret its decision, warning that Saudi Arabia and Kuwait Stanian like his country due to the price fall. He said in a speech broadcast on state television, "If you have suffered Iran as a result of lower oil prices, know that other oil-producing nations such as Saudi Arabia and Kuwait will suffer more than Iran, "as he put it.
Referred to the decision (OPEC) last November to maintain the production levels unchanged at 30 million barrels per day. He said Saudi Oil Minister Ali al-Naimi recently that the organization of these levels will not be reduced even if prices fell to twenty dollars a barrel. As the oil minister of the UAE Suhail bin Mohammed Mazrui said Tuesday that OPEC will not change its strategy for the production of oil unlikely occurrence of a sudden rebound in prices. He said during an energy conference in Abu Dhabi that the decision (OPEC) in November to maintain the production level unchanged was correct.
With this media report stated that Iraq has begun offering big discounts on oil, which will be sold in European markets during the month of February. And the transfer of the published report in the newspaper (Middle East) London Sunday (January 11) under the title "Iraq expands oil competition with Saudi Arabia in Europe after Asia" for the Iraqi Oil Marketing Company (SOMO) in the list of prices for February that it had raised the reduction of Basra Light crude to Europe by $ 1.6 per barrel, compared to December current prices, while the second Kirkuk oil prices of around $ 1.9 per barrel will increase during the same period. The report noted that, based on these cuts, will sell Iraq Basra crude to Europe in February, the price of Brent crude contracts for immediate minus $ 5.95 a barrel, after he sells in this January at a price of Brent minus $ 4.35 a barrel.
Iraqi engineer in the Zubair oil field Iraqi engineer in the Zubair oil field
The Reuters news agency quoted Tuesday Inc. (Phillip Futures) Phillip Futures taken Singapore-based oil market is still "suffering from oversupply and weak demand" unexpected that these factors drive prices to retreat economist Lebanese Dr. Eli Yashui told Radio Free Iraq that the is unlikely that "this low level for the price of oil will not last long," as he put it.
Yashui explained that Spbn two presidents are pushing for the resumption of prices to rise again are the first "big loss incurred by the producer and exporter of oil, which entered into financial commitments on the basis of one hundred dollars a barrel, the price ..... The second reason is that the oil companies that extract oil in particular from the sea, a sea north, for example, began laying off employees and workers as they entered are also in the process of loss due to the cost of extracting oil from the water ... and that US companies that produce oil shale entered as well as the severe loss due to the cost of the very low price of conventional oil, compared with the relatively high cost When production of shale oil .. "
Yashui expressed his belief that these two reasons, any loss-producing countries and the loss of oil companies, are what Erghan low price does not continue for a long time now. He also pointed to another key factor on oil, "which is that when a commodity is scarce, the economic price should be two components includes two market rate component and a component price scarcity and percent dollars for a barrel of oil was representing actual economic price to conventional oil because maybe someday history will write that oil civilization Traditional has lasted two hundred years, between 1860 and 2060, "as he put it.
In my interview over the phone and can be heard in the audio file, the Lebanese economist talked about other related topics, including the forecast period of time to resume oil prices rise and coordination between producing members and non-members of the (OPEC) as well as a reflection of the current decline in prices on the states consuming.
[You must be registered and logged in to see this link.]
13/01/2015
Vary expectations regarding the implications of the collapse of oil prices on economic growth rates in light of the apparent vulnerability budgets producing countries and a slight recovery of the markets consuming countries over the past months.
Price recorded Tuesday a new low level is the weakest in nearly six years with falling price of a barrel of Brent crude to less than $ 46 to about $ 45 a barrel for US crude. Although some of the Member States of the Organization of Petroleum Exporting Countries official statements (OPEC) that the organization will not change its strategy productivity, leaving the market to determine prices have seen the last few hours of intensive consultations pointing to possible changes in the strategy.
President of Venezuela Nicolas Maduro arrived Monday night to Algeria to visit during which he announced that he would hold talks with his counterpart Abdelaziz Bouteflika for "consultations" between the two countries in the two activists (OPEC) on the price crisis.
OPEC logo OPEC logo
The Maduro Sunday visit Saudi Arabia after talks in Iran, such as Venezuela, which suffers from the collapse of oil prices. In the latest statement made by Tuesday (January 13), Iranian President Hassan Rohani said the countries behind the drop in world oil prices will regret its decision, warning that Saudi Arabia and Kuwait Stanian like his country due to the price fall. He said in a speech broadcast on state television, "If you have suffered Iran as a result of lower oil prices, know that other oil-producing nations such as Saudi Arabia and Kuwait will suffer more than Iran, "as he put it.
Referred to the decision (OPEC) last November to maintain the production levels unchanged at 30 million barrels per day. He said Saudi Oil Minister Ali al-Naimi recently that the organization of these levels will not be reduced even if prices fell to twenty dollars a barrel. As the oil minister of the UAE Suhail bin Mohammed Mazrui said Tuesday that OPEC will not change its strategy for the production of oil unlikely occurrence of a sudden rebound in prices. He said during an energy conference in Abu Dhabi that the decision (OPEC) in November to maintain the production level unchanged was correct.
With this media report stated that Iraq has begun offering big discounts on oil, which will be sold in European markets during the month of February. And the transfer of the published report in the newspaper (Middle East) London Sunday (January 11) under the title "Iraq expands oil competition with Saudi Arabia in Europe after Asia" for the Iraqi Oil Marketing Company (SOMO) in the list of prices for February that it had raised the reduction of Basra Light crude to Europe by $ 1.6 per barrel, compared to December current prices, while the second Kirkuk oil prices of around $ 1.9 per barrel will increase during the same period. The report noted that, based on these cuts, will sell Iraq Basra crude to Europe in February, the price of Brent crude contracts for immediate minus $ 5.95 a barrel, after he sells in this January at a price of Brent minus $ 4.35 a barrel.
Iraqi engineer in the Zubair oil field Iraqi engineer in the Zubair oil field
The Reuters news agency quoted Tuesday Inc. (Phillip Futures) Phillip Futures taken Singapore-based oil market is still "suffering from oversupply and weak demand" unexpected that these factors drive prices to retreat economist Lebanese Dr. Eli Yashui told Radio Free Iraq that the is unlikely that "this low level for the price of oil will not last long," as he put it.
Yashui explained that Spbn two presidents are pushing for the resumption of prices to rise again are the first "big loss incurred by the producer and exporter of oil, which entered into financial commitments on the basis of one hundred dollars a barrel, the price ..... The second reason is that the oil companies that extract oil in particular from the sea, a sea north, for example, began laying off employees and workers as they entered are also in the process of loss due to the cost of extracting oil from the water ... and that US companies that produce oil shale entered as well as the severe loss due to the cost of the very low price of conventional oil, compared with the relatively high cost When production of shale oil .. "
Yashui expressed his belief that these two reasons, any loss-producing countries and the loss of oil companies, are what Erghan low price does not continue for a long time now. He also pointed to another key factor on oil, "which is that when a commodity is scarce, the economic price should be two components includes two market rate component and a component price scarcity and percent dollars for a barrel of oil was representing actual economic price to conventional oil because maybe someday history will write that oil civilization Traditional has lasted two hundred years, between 1860 and 2060, "as he put it.
In my interview over the phone and can be heard in the audio file, the Lebanese economist talked about other related topics, including the forecast period of time to resume oil prices rise and coordination between producing members and non-members of the (OPEC) as well as a reflection of the current decline in prices on the states consuming.
[You must be registered and logged in to see this link.]
