Article: "Native Americans and Gulf Oil Policy" (الأمريكيّون الأصليّون وسياسة النفط الخليجيّة)11/11/2016
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Published in the Financial Post
OPEC nonetheless maintains an ability to influence day-to-day movements in oil markets. Following the agreement in Algeria, which is essentially an agreement to talk about a future agreement, prices for crude benchmark West Texas Intermediate rose six per cent. Prices slumped again slightly in the following days. Continue
Published in the Financial Post
“The important question from Saudi Arabia’s perspective, and from every producer’s perspective, is what is the future trajectory of prices compared to the present,” says Omar Al-Ubaydli, a director for the Bahrain Center for Strategic, International and Energy Studies. “Given that they think oil prices are going to be lower in the future — because of electric cars, because governments want to do more to cut emissions and that kind of thing — it makes sense to try to sell as much as they can now.” Continue Published in MarketWatch
Omar Al-Ubaydli, a program director at the Bahrain Center for Strategic, International and Energy Studies, referred to the output cap speculation as a “red herring.” Everyone is producing as much as they can or want to produce anyway, “so an output freeze is equivalent to all the runners in the 100-meter final saying: ‘Let’s agree to not run faster than 9 seconds’.” “In that case, they just want to project collective power,” said Al-Ubaydli, who’s also an affiliated senior research fellow at the Mercatus Center at George Mason University. Some producers may intend to exhibit “willful production restraint,” but an agreement would “unravel within days or weeks since there is no reliable way to monitor cheaters and everyone has a history of cheating,” he said, adding that OPEC had a 96% output quota violation rate from 1980 to 2009. Continue |
Omar Al-Ubaydli
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Omar Al-Ubaydli
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