Is It Time For OPEC To Turn The Taps Back On?

11 Sep 2017   OPEC

Russia’s Energy Minister Alexander Novak said earlier this week that he’d spoken with his Saudi counterpart about the possibility of another extension to the OPEC-non-OPEC crude oil production deal; oil prices rose. Industry observers once again reminded us that there aren’t any new options for OPEC and its partners: they can either keep on cutting and lose market share, or they can turn the taps back on and bring prices down. Bloomberg Gadfly’s Liam Denning argues that the second scenario is the only one that could work for low-cost producers such as Saudi Arabia. Enough with the comments about a new extension, Denning suggests, nobody is listening. A U-turn in Saudi oil policy, according to him, is the only way to survive. Yet there is a catch in Denning’s scenario. He says, “ The rational thing to do would be for large, low-cost producers such as Saudi Arabia to […]

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