Saudi Arabia might play hardball with OPEC - here's why
Business Insider
Published Sep 14, 2016 10:04PM ET
Updated Sep 15, 2016 04:28AM ET
Recent developments in the OPEC universe have fueled speculation that oil producers might actually be able to agree on something at the informal talks in Algiers, Algeria, set for September 26-28.
Most notably, Saudi Arabia and Russia agreed at the G-20 summit in China last week to meeting in Doha, Qatar, back in April .)
"While recent rhetoric suggests a freeze deal has a fighting chance, on-the-ground realities make this outcome far from certain in light of worsening geopolitical tensions within OPEC, too many members production below current and/or aspirational capacity, and demand concerns if prices are driven too high, too fast," a Macquarie Research team led by Vikas Dwivedi argued last week.
"Even if a 'freeze' truly materializes, it will provide little fundamental impact," Dwivedi added. "From a longer-term perspective, core OPEC and non-OPEC producers are eyeing $50+ levels to enable future growth."
"Thus, instead of a meaningful rapprochement among key producers, a 'freeze' may merely represent an opportunity to 'reload' only to resume oil market hostilities."
Prices for Brent crude oil, the international benchmark, are up by 0.3% at $47.20 a barrel as of 10:37 a.m. ET.
Get The News You Want
Written By: Business Insider
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.