Posted On: 11/05/2016 1:39:12 AM
Post# of 65629
the gas prices are down because of the Saudi oil war .
The OPEC leaving production quotas unchanged has naturally been the top news last week and most investors have spent at least some time over the weekend to reflect on the implications of the move on their portfolios. There have been several theories and explanations as to why the OPEC didn't cut. The obvious reasons stretch from the lack of agreement between OPEC members on whether to cut, by how, and most importantly, how much production each country sacrifices. Other explanations include the strategy of the dominant OPEC member, Saudi Arabia, to let the prices fall in order to squeeze out high-cost oil producers, such as Canadian oil sands and U.S. shale oil . The explanations or speculations also include some supposed secret deal between the U.S. and Saudi Arabia to damage Russia, Iran, ISIS and other "rogue" regimes or interest groups around the world. There are certainly many more theories for why OPEC didn't cut.
Saudis are most probably thinking long term, so any explanation needs to include a combination of short term and long-term strategic goals. And the question also lingers whether OPEC still has enough power over oil prices.
here there is more here is a seven page article on this
http://seekingalpha.com/article/2719985-the-r...production
The OPEC leaving production quotas unchanged has naturally been the top news last week and most investors have spent at least some time over the weekend to reflect on the implications of the move on their portfolios. There have been several theories and explanations as to why the OPEC didn't cut. The obvious reasons stretch from the lack of agreement between OPEC members on whether to cut, by how, and most importantly, how much production each country sacrifices. Other explanations include the strategy of the dominant OPEC member, Saudi Arabia, to let the prices fall in order to squeeze out high-cost oil producers, such as Canadian oil sands and U.S. shale oil . The explanations or speculations also include some supposed secret deal between the U.S. and Saudi Arabia to damage Russia, Iran, ISIS and other "rogue" regimes or interest groups around the world. There are certainly many more theories for why OPEC didn't cut.
Saudis are most probably thinking long term, so any explanation needs to include a combination of short term and long-term strategic goals. And the question also lingers whether OPEC still has enough power over oil prices.
here there is more here is a seven page article on this
http://seekingalpha.com/article/2719985-the-r...production
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