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

5 Green Energy Stocks to Watch as India Readies for a Revolution (Views On News)

Oct 13, 2021

The excitement around green energy stocks has opened up a huge contrarian opportunity in the traditional energy space.

Top Performing PSU Stocks over the Past One Year (Views On News)

Oct 1, 2021

After a decade of underperformance, PSU stocks have woken up. Here are the best performing PSUs of past twelve months.

Linde India Shares Hits New High. Up 230%+ in One Year (Views On News)

Aug 26, 2021

Linde India shares have surged sharply in the past few trading sessions. What's causing the rally?

ONGC Logs Massive Jump in Net Profit as Crude Oil Prices Double (Views On News)

Aug 16, 2021

Rising crude oil prices compensate ONGC's fall in production.

HPCL Shares Under Pressure After Profit Declines in June Quarter (Views On News)

Aug 5, 2021

Rising crude oil prices and forex woes weigh on HPCL's quarterly numbers.

More Views on News

Most Popular

Infosys vs TCS: Which is Better? (Views On News)

Nov 26, 2021

In the post pandemic era, the top two IT companies in India are fighting to capture the growing demand for IT.

This Multibagger Stock Zooms 20% After Dolly Khanna Buys Stake (Views On News)

Nov 24, 2021

Shares of this edible oil company zoomed over 50% in three days after ace investor bought around 1% stake.

Don't Sell these Stocks if the Market Falls (Profit Hunter)

Nov 17, 2021

These are the 3 types of stocks that you should not sell in a market crash.

How to Find Your Next 10-Bagger in this Market (Profit Hunter)

Nov 19, 2021

The #1 make or break factor in your portfolio you shouldn't ignore.

MobiKwik IPO Opens for Subscription Soon. Key Things to Know Before Subscribing. (Views On News)

Nov 20, 2021

The Rs 19 bn issue is set to hit the market soon.

More

Become A Smarter Investor
In Just 5 Minutes

Multibagger Stock Guide 2022
Get our special report Multibagger Stocks Guide (2022 Edition) Now!
We will never sell or rent your email id.
Please read our Terms

S&P BSE OIL & GAS


Nov 29, 2021 (Close)

S&P BSE OIL & GAS 5-YR ANALYSIS

COMPARE COMPANY

MARKET STATS