All the world’s players are reacting to the sustained drop in crude oil prices. Here are a few articles I’ve found of interest lately. Another post soon.
1/12 – CNN money – OPEC considering emergency action on oil prices – Article hints that OPEC may have an emergency meeting as soon as February. Next scheduled meeting is in June. Goal would be to get production cuts which will pull oil off the market and increase prices.
Article asserts Saudi Arabia started the price war (which is now the appropriate word) to go against shale producers in the US. That has been my assumption all along. Most articles I see in print now state that as common knowledge.
OPEC may be about ready to blink.
12/28 – Bloomberg News at Calgary Herald – Shale drillers running out of tricks to survive as OPEC keeps up pressure – Shale drillers have done all they obvious things to cope with $50 oil: lay off staff, focus on the best spots, increase amount of sand, drill smarter, drill faster, and squeeze suppliers. That has allowed the industry to essentially maintain production.
But now oil is at $35.
Continue reading “Background on collapse in crude oil prices – 1/20”
