After one month of a dramatic break-up and a beginning of an oil war between Russia and the Saudi Arabia, history was made last Sunday with a renewed agreement achieved by OPEC + of 9.7 million barrels per day (mbpd) oil output cut. A 10 million bpd oil reduction is the biggest cut ever agreed in [...]
In the current situation of entire economies being paralyzed by the coronavirus outbreak, you would think oil producing nations (like everyone else) have enough to worry about. With much economic activity including international air travel coming to a standstill, the loss of demand is enormous. Nevertheless, OPEC and Russia not only failed to come to a [...]
During the last weeks, what we discussed in previous articles became a reality. And so it is, that the Organization of Petroleum Exporting Countries has lost its grip on the global crude oil markets and its actions are not as effective as they once were. A new significant fall in prices few months after the extension [...]
OPEC's efforts to balance crude oil stocks are not enough, as we approach Brent levels of 50$/b. Production cuts are countered by an ever-rising production of American output (shale oil) with 15 straight weeks of increasing rig count according to Baker Hughes. Though many OPEC members have already achieved compliance on the production-cut agreement, others see their [...]
“We are starting to live in a world where getting more oil involves more energy, more effort and more expensive.” – Tad Patzek, President of the Department of Petroleum and Geosystems at the University of Texas. You can’t get blood from a stone … can you? Countries such as Venezuela, Saudi Arabia, Russia or Iran have [...]
It is well known that the Russian economy is heavily dependent on its hydrocarbon industry, as shown from many economic indicators so deeply bonded to oil prices. As a result, the fall in the price of crude since late 2014 had significant consequences on Russia both from an economic and a political perspective. What is interesting [...]
