Energy: Cartel is king - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Energy: Cartel is king

Sep 7, 2000

The surging crude oil prices continue to cause worry amongst the oil consuming nations. The U.S and the EU countries have condemned the cartel for not lifting crude production and cooling of prices. The week so far has seen the natural resource scale new highs. Crude futures were trading above $33/barrel in the international markets. The crude prices have now remained above the crucial $30/barrel for almost a month.

The Organisation for Petroleum Exporting Countries (OPEC) is scheduled to meet on the September 10, to review the world oil prices and hike production accordingly. The market, however, is now of the opinion that the cartel will have to raise production by more than 500,000 barrels/day (b/d) if they are to cause any dent on the prices.

The current surge has its genesis in three rounds of production cuts carried out by the OPEC in early 1999. The cuts were undertaken to raise prices from their 25 year low of $10/barrel. The move has seen the prices skyrocket to the current levels. If the next production hike comes through it will be the third such hike since April '00 to cool off prices.

Even today, 20 years after the second oil shock, world oil prices continue to be the exclusive domain of the OPEC. In fact, over this period their control has increased if not remained the same.

The above table does not augur well for the oil consuming nations as the dependence on Central Asian crude has increased. One can only hope that the cartel does not abuse the hegemony it enjoys in crude production.


Equitymaster requests your view! Post a comment on "Energy: Cartel is king". Click here!

  

More Views on News

Sorry! There are no related views on news for this company/sector.

Most Popular

Why We Picked This Small-cap Stock for Our Hidden Treasure Subscribers (Profit Hunter)

Sep 17, 2020

This leading household brand will profit big time in a post covid world.

My Top Stock to Buy in this Market Selloff (Profit Hunter)

Sep 22, 2020

The recent correction offers a great opportunity to buy this high conviction smallcap stock.

What Do the Charts Say About Buying Smallcaps Now? (Fast Profits Daily)

Sep 18, 2020

Everyone seems to be excited about buying smallcaps now...but is it the right thing to do? What do the charts tell us? Find out in this video...

Can the Nifty Fall to 10,200? (Fast Profits Daily)

Sep 24, 2020

The Nifty has reached an important support level today. If it breaks then we could see further downside.

More

Covid-19 Proof
Multibagger Stocks

Covid19 Proof Multibaggers
Get this special report, authored by Equitymaster's top analysts now!
We will never sell or rent your email id.
Please read our Terms

S&P BSE OIL & GAS


Sep 25, 2020 (Close)

S&P BSE OIL & GAS 5-YR ANALYSIS

COMPARE COMPANY

MARKET STATS