Nearly 40 years ago, OPEC nations met and brought America to her knees overnight. Long gasoline lines. Gasoline prices skyrocketed. Crippling economic conditions. Nearly two generations have passed since then. That translates to 185 million Americans – more than half of all Americans – who have never experienced that hardship or challenge. But those of us who did will never forget it.
My, how times have changed. OPEC nations – and a few others – gathered in Doha, Qatar the other day to address the slide in oil prices that threaten their economic viability and their national security. Powerful gathering? Hardly. Laughable is more like it.
When a commodity costs more to produce than the current market price, producers usually stop producing it. But when it comes to U.S. crude, a global crash in prices hasn’t been matched by deep cuts in production.
The biggest impact so far has been felt on investment in new wells, as U.S. producers big and small have slashed capital spending and sidelined drilling rigs. As of this month, about 350 rigs were drilling for oil in the U.S. — about a quarter of the peak in October 2014.
Saudi Arabia’s 30-year-old deputy crown prince may have already tanked any hope of an oil deal.
Oil-producing countries from inside and outside of OPEC hope to strike a deal this weekend to freeze production in order to stabilize the price of crude. Since Saudi Arabia, Russia and others first agreed to a meeting in February, oil prices have been supported at somewhat higher levels.
Other than Russian President Vladimir Putin, there’s no single individual seen as having more sway over the world oil market, and Deputy Crown Prince Mohammad bin Salman is critical to the success or failure of this weekend’s meeting in Doha, Qatar.
Oil hit its lowest level in nearly a month last week, but one of Wall Street’s top commodities analysts says a recovery is on the way in 2016.
On CNBC’s “Futures Now”, global head of commodities strategy at RBC Capital Markets Helima Croft predicted that oil will rebound following a scheduled meeting between OPEC and non-OPEC members on April 17th in the Qatari capital.
“We spent an entire year with [Saudi Arabia and Russia] saying everything was fine,” explained Croft.
“Their decision to come out and even mention a freeze was a catalyst for the rally” that recently pulled crude to within view of $40, Croft said. “As we look towards the April 17 meeting, I don’t think Saudi Arabia would even show up in Doha if there wasn’t going to be an agreement.”
The world’s largest crude exporter, Saudi Arabia has lost its leading position in nine of the 15 top markets in the past three years reports the Financial Times citing data from energy consultancy group FGE.
According to the analysis, the kingdom lost ground in China, South Africa and the US between 2013 and 2015, despite the goal of maintaining its crude market share amid the oil glut.
“Saudi Arabia has had very difficult time selling oil in this environment,” Citigroup analyst Ed Morse told the FT. “Its rivals are going into a very crowded market in a very aggressive way.”
London (Reuters) – oil prices fell on Tuesday, after deadly blasts in Brussels prompted a flight towards traditional investment havens such as gold, and after OPEC member Libya said it would not attend a meeting to discuss a supply freeze.
Thirty-four people were killed in attacks on Brussels airport and a rush-hour metro train in the Belgian capital on Tuesday, according to public broadcaster VRT, triggering security alerts across Europe and bringing some cross-border traffic to a halt.
Libya said it would not attend a gathering in Doha next month intended to help OPEC and major producers outside the cartel to cut a deal to keep output at January’s levels.
Rep. Lummis spoke to Secretary of the Interior Sally Jewell about the new federal land coal leasing moratorium and other anti-energy policies that are devastating to our economy and jobs in Wyoming. President Obama and his Administration continue pushing regulations and policies to keep our natural resources in the ground and cheat the American people out of a fair return on the production of publicly-owned resources that goes to support everything from schools to transportation.
Choosing a presidential candidate is not easy. There are so many issues to consider, and to understand where each candidate stands on every subject is no small feat. If you have a television, it’s likely that in the past few weeks, you’ve heard enough name calling and overdramatized headlines to last a lifetime. My goal today is to stick to the issues, and provide investors with a useful look at each candidate’s stance on energy. I’m going to discuss the polices of both democrats and the three republicans with the highest ratings in the polls (Trump, Cruz, and Rubio). We’ll go in alphabetical order starting with Ms. Clinton
Major OPEC producers are privately starting to talk about a new oil price equilibrium of $50 a barrel, adding to signs that the market’s long, deep rout is officially over, says one of the industry’s leading prognosticators.
Gary Ross, the founder, executive chairman and chief oil soothsayer at New York-based consultancy PIRA, told clients 2-1/2 weeks ago that he reckoned the “lows are in” for crude, which was then about $30 a barrel. U.S. futures have rallied since then to close at nearly $36 on Friday, with a handful of analysts also cautiously calling a bottom.
In an interview with Reuters, Ross said oil should recover to $50 a barrel by the end of the year, potentially aided by eventual supply cuts from leading producers among the Organization of the Petroleum Exporting Countries (OPEC).
“Since the Saudis and Russia reached an agreement to freeze output, volatility in the market has eased and oil prices have stabilized with the focus shifting back to fundamentals,” said Hong Sung Ki, a senior analyst at Samsung Futures Inc. “More stable oil prices are expected in the coming months, possibly up to the $40 level, at least until the next OPEC meeting in June.”
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