Tag Archives | OPEC

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Oil futures focus on $50/bbl for December

Futures markets are taking an increasingly gloomy view of oil demand. And over the past 2 weeks, the volume of NYMEX contracts to sell crude at $50/bbl has soared 50-fold. But so far, as the blog expected, physical prices have stabilised at the $70/bbl level in advance of OPEC’s emergency meeting on Friday. Current OPEC […]

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OPEC bites the bullet

Events have moved quickly in oil markets in recent days. Last week, when oil was at $80/bbl, the blog argued that OPEC risked having to defend a $50/bbl price, by delaying production cuts until its 18 November meeting. Last night, OPEC signalled it agreed with this analysis, announcing that the meeting would now take place […]

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OPEC tries to hold $70/bbl oil

OPEC has called an emergency meeting for 18 November to discuss measures to combat collapsing oil prices. But as the blog noted last week, by then they could be looking to defend $50/bbl. And it seems Saudi Arabia agrees. Market reports suggest ‘the world’s top oil exporter has already started cutting oil supplies to European […]

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OPEC tries to hold the oil price

OPEC has called an emergency summit for 18 November ‘to discuss the global financial crisis, the world economic situation and the impacts on the oil market’. Its president, Chakib Khelil, added that it was ‘very likely’ they would cut output. This morning’s price is already down to $80/bbl, with US total products demand down 8.6% […]

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OPEC says oil market ‘over-supplied’

This morning, the blog is awarding itself a pat on the back. This is because, almost alone, it forecast in mid-July that oil prices ‘could easily fall $50/bbl to $100/bbl’ in the absence of any military action on Iran. And it had the courage to repeat this comment on 4 August. It added that if […]

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A new ‘North-South dialogue’

I’ve read several reports on the outcome of the Jeddah oil ‘summit’, and still feel no wiser than last week:

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Oil hits $140/bbl

Chemical companies are still getting used to the idea that crude is trading above $100/bbl. For many of them, this was a complete shock, as many had believed the consensus view and budgeted for a $70/bbl average in 2008. Now, however, worse news is in prospect as forward prices have been racing away this week. […]

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OPEC suggests $200/bbl oil

OPEC used to believe that its fortunes were tied to the health of the global economy. But as I noted last month, its current policy is more reminiscent of ‘the difficult times of 1973/4 and 1979/80’. The evidence for this statement is mounting. Saudi Oil Minister, Ali Naimi, said recently that the Kingdom has ‘no […]

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ExxonMobil regains top place

After 5 months, ExxonMobil is once again the world’s largest company by market capitalisation. PetroChina had overtaken it last November, but has since lost half its value in China’s stock market decline. Today, PC is worth $453bn, versus EM’s $455bn. China’s stock market has lost 25% so far this year. But PC has been particularly […]

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OPEC holds production as oil prices rise

OPEC today decided to hold oil production at current levels, even though prices are at a level which clearly threaten economic growth. They even recognised this risk in their statement, ‘highlighting the economic slowdown in the USA, which together with the deepening credit crisis in financial markets, is increasing the downside risks for world economic […]

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