However, OPEC members face a familiar quandary: their cuts are helping U.S. and other competitors keep those storage tanks full.
OPEC and big producers like Russia agreed in December to reduce…
The brimming U.S. crude inventories that sent oil prices tumbling this week are expected to put pressure on the Organization of the Petroleum Exporting Countries and other producers to extend their historic agreement to cut output.
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Falling Oil Prices Could Upend The OPEC Deal
Speculation that prices would reach $70 by years end without further OPEC cuts now looks a tad optimistic.
Bearish options are getting more attention and short sellers may be crowding into the oil market.
The immediate cause of the fall seems to be the untrammeled growth in U.S. shale production.
Related: Is The Oil Price Plunge A Turning Point?
Despite weak fundamentals and persistent evidence that a glut remained on the global market, investors piled into long positions and forecasts swayed between $60 and $70 per barrel.
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OPEC member Saudi Arabia oil minister Kahlid Al-Falih acknowledged that global oil stockpiles declined slower than OPEC foresaw.
Cutting oil output forced OPEC member Saudi Arabia to assist its rival oil producers.
Unfortunately for OPEC member Saudi Arabia oil stockpiles resisted change; the number remains about the same globally.
OPEC Member Saudi Arabia Sticks With Current Plan For NowSymbolism is important and can help OPEC maintain its commitments.
OPEC member Saudi Arabia landed itself in an untenable situation.
collected by :John Locas