opec cuts?

Discussion in 'Economics' started by cashclay, Jan 31, 2016.

  1. cashclay

    cashclay

    How likely do you believe that opec will come to an production cut accord? And do you believe that it will significant enough to save oil prices?
     
  2. vicirek

    vicirek

    After years of colonial exploitation of oil fields in the Gulf the production "cut" will come sooner or later by itself. Oil price is driven by tradeable paper promises and politics not by supply and demand for decades already. The US has to prevent countries like Russia, Venezuela, Iran replacing Arab countries as new source of plentiful and relatively cheap oil. I think this is the real game we are watching now.
     
  3. Chubbly

    Chubbly

    Yes, this is a chess game and not everyone is playing with the same board or pieces. Everyone has their own endgame in mind
     
  4. kashirin

    kashirin

    why to cut exactly?
    to give market share to US shale?
    so previous 18 months were for nothing?
    they still won't get their $100 price
    maybe 60 if very luck and still probably very short term
     
  5. cashclay

    cashclay

    their estimations could have been wrong. I think the rumors of talks are starting to show that.
     
  6. kashirin

    kashirin

    cuts won't get them anywhere
    shale is supereffective. any OPEC cuts will be substituted by shale within months
    OPEC and Russia must get used to sub 40 oil forever
     
  7. ha,ha, how do you think shale will do at $40?
     
  8. ktm

    ktm

    Forever? Nothing is forever.
     
  9. vicirek

    vicirek

    US needs higher oil prices too because of gas tax that is major cash grab from the population. With lower oil prices lack of tax revenue has to be covered by higher deficits and debts. It is a game of who blinks first.
     
  10. cashclay

    cashclay

    True and im thinking that it will be the saudis and opec . The larger shale co in the us can hold out longer than the opec countries but their assrts seem to be more diversified. Plus countries have civilian pop who tend to revolt something that leaders understand.
     
    #10     Jan 31, 2016