dimanche 22 mars 2015
Return to $100 Oil Seen Unlikely by Saudis Amid Shale Surge
Posted on 15:22 by nice news
Oil prices wont rebound to $100 a barrel because increased prices would draw more shale and other output from higher-cost producers to the market, said Mohammed al-Madi, Saudi Arabias governor to OPEC.
I think it will be difficult to reach $100 or $120 another time, al-Madi said at a conference in Riyadh on Sunday. This will let the high-cost producers come back again. Saudi Arabia, the nation leading OPEC in defending its share of the global oil market, will keep investing to maintain its current output capacity, he said.
Brent oil, the global benchmark, declined almost 50 percent in the past year as Saudi Arabia and others in the Organization of Petroleum Exporting Countries committed to maintain output amid a global surplus. U.S. output is the highest in three decades as drillers pump crude from shale.
Shale oil companies are one of the high-cost producers that benefited from high oil prices, al-Madi said. Were not against shale oil. We welcomed shale oil but its not fair for high-cost producers to push low-cost producers out of the market.
OPECs role in the oil market hasnt been undermined by the drop in prices since its Nov. 27 meeting in Vienna when it chose market share over production cuts, al-Madi said.
OPECs Interest
If OPEC could have controlled the prices it would have done so, but it is not in the interest of OPEC to control the prices, al-Madi said. It is OPECs interest to achieve balance in the market. The price should be decided by the market, and the market is subject to supply and demand.
The world needs $40 trillion of
I think it will be difficult to reach $100 or $120 another time, al-Madi said at a conference in Riyadh on Sunday. This will let the high-cost producers come back again. Saudi Arabia, the nation leading OPEC in defending its share of the global oil market, will keep investing to maintain its current output capacity, he said.
Brent oil, the global benchmark, declined almost 50 percent in the past year as Saudi Arabia and others in the Organization of Petroleum Exporting Countries committed to maintain output amid a global surplus. U.S. output is the highest in three decades as drillers pump crude from shale.
Shale oil companies are one of the high-cost producers that benefited from high oil prices, al-Madi said. Were not against shale oil. We welcomed shale oil but its not fair for high-cost producers to push low-cost producers out of the market.
OPECs role in the oil market hasnt been undermined by the drop in prices since its Nov. 27 meeting in Vienna when it chose market share over production cuts, al-Madi said.
OPECs Interest
If OPEC could have controlled the prices it would have done so, but it is not in the interest of OPEC to control the prices, al-Madi said. It is OPECs interest to achieve balance in the market. The price should be decided by the market, and the market is subject to supply and demand.
The world needs $40 trillion of
Return to $100 Oil Seen Unlikely by Saudis Amid Shale Surge
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