04.06.15 Oil price – up or down?

Posted on June 4, 2015
Archive : June 2015
Category : Energy News

The Organisation of the Petroleum Exporting Countries (Opec) is meeting in Vienna this week to decide whether or not to cut oil output which would then help move oil prices upwards. The current over supply of oil is helping to keep prices low. Opec countries now only produce about 4 out of every 10 barrels of oil that the world uses so it has a lot less clout than it had before to manipulate the market. With the new-found energy independence of the US, due to its shale oil and gas, the US has now overtaken Saudi Arabia as the largest oil producer in the world. The Saudis are banking that their own over-production will keep oil prices so low that it will price the American oil out of the market and make it uneconomic to produce. The big worry for the Saudis and Opec is that if they do cut oil production then the hungry Russians may well just step in and steal their market.

Source: BBC News – to read this very interesting BBC overview please click here