Tarne Posted December 1, 2016 Share Posted December 1, 2016 http://news.sky.com/story/Oil-prices-surge-as-opec-agrees-production-cut-10678117 I'm as right wing as they come, but I don't for one minute believe they actually cut production by this amount in a whim, it just goes on the black market to non western markets right? Link to comment Share on other sites More sharing options...
quilp Posted December 1, 2016 Share Posted December 1, 2016 It's a crude way to do business... Link to comment Share on other sites More sharing options...
fatshaft Posted December 1, 2016 Share Posted December 1, 2016 http://news.sky.com/story/Oil-prices-surge-as-opec-agrees-production-cut-10678117 I'm as right wing as they come, but I don't for one minute believe they actually cut production by this amount in a whim, it just goes on the black market to non western markets right? Incorrect. $pb had to go up, Saudi's are running out of cash, they need better return, as do all oil producing countries. Link to comment Share on other sites More sharing options...
pongo Posted December 1, 2016 Share Posted December 1, 2016 $pb had to go up, Saudi's are running out of cash, they need better return, as do all oil producing countries. The price will briefly spike and then continue to fall in 2017. The demand does not exist. And they cannot keep cutting production because ultimately that means them losing market share. Link to comment Share on other sites More sharing options...
woolley Posted December 1, 2016 Share Posted December 1, 2016 The minute they take it too high they will be up against shale again. Link to comment Share on other sites More sharing options...
Chinahand Posted December 1, 2016 Share Posted December 1, 2016 http://news.sky.com/story/Oil-prices-surge-as-opec-agrees-production-cut-10678117 I'm as right wing as they come, but I don't for one minute believe they actually cut production by this amount in a whim, it just goes on the black market to non western markets right? Google fungible. Link to comment Share on other sites More sharing options...
fatshaft Posted December 1, 2016 Share Posted December 1, 2016 $pb had to go up, Saudi's are running out of cash, they need better return, as do all oil producing countries. The price will briefly spike and then continue to fall in 2017. The demand does not exist. And they cannot keep cutting production because ultimately that means them losing market share. Continue to fall? It's been on the rise for a year and has basically doubled since January. If there's no demand how can cutting production lose market share? This is all very confused. Link to comment Share on other sites More sharing options...
Lisenchuk Posted December 2, 2016 Share Posted December 2, 2016 It's a crude way to do business... Palms may have been greased. Link to comment Share on other sites More sharing options...
Lisenchuk Posted December 2, 2016 Share Posted December 2, 2016 $pb had to go up, Saudi's are running out of cash, they need better return, as do all oil producing countries. The price will briefly spike and then continue to fall in 2017. The demand does not exist. And they cannot keep cutting production because ultimately that means them losing market share. Continue to fall? It's been on the rise for a year and has basically doubled since January. If there's no demand how can cutting production lose market share? This is all very confused. As the market price increases it becomes more commercially viable to profitably extract the more difficult,and costly to get, extracts like shale oil Link to comment Share on other sites More sharing options...
pongo Posted December 2, 2016 Share Posted December 2, 2016 basically doubled since January. But from a relatively low base. If there's no demand how can cutting production lose market share? It's not that there is no demand. Historically - whenever OPEC has cut production in attempt to increase prices they have lost market share and then struggled to regain that. The OPEC countries currently enjoy a market share at levels not seen since the mid 70s - which is presumably why they feel they can gamble a little. Link to comment Share on other sites More sharing options...
fatshaft Posted December 6, 2016 Share Posted December 6, 2016 basically doubled since January. But from a relatively low base.[1] If there's no demand how can cutting production lose market share? It's not that there is no demand. Historically - whenever OPEC has cut production in attempt to increase prices they have lost market share and then struggled to regain that. The OPEC countries currently enjoy a market share at levels not seen since the mid 70s - which is presumably why they feel they can gamble a little.[2] [1] Oh sorry, I thought you said continue to fall? [2] Oh sorry, I thought you said demand does not exist? Link to comment Share on other sites More sharing options...
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