OPEC just cannot be a cartel anymore. With just about 42 % of world's production share, it cannot be as influential as it used to be. OPEC is a divided house. As such, it cannot be so joined in action. Cuts of say a million barrels will be compensated by others who might want to sell off early in a falling market.
Oil prices therefore should drift south in any case even after a probable cut. Maybe good news for Asia and to the non oil companies of USA and Europe as production costs will fall. Companies like Shell and BP who have invested may see stretched bottom lines.
Oil prices therefore should drift south in any case even after a probable cut. Maybe good news for Asia and to the non oil companies of USA and Europe as production costs will fall. Companies like Shell and BP who have invested may see stretched bottom lines.
No comments:
Post a Comment