The energy news headlines these days are all about the failure of the Doha summit and the upcoming June OPEC meeting in the face of a historic, intractable global supply glut.
Don’t expect a production cut from this Sunday’s Doha meeting. Unlike what some analysts think, that’s not what this oil meeting is about.
The oil price crunch has necessitated that OPEC countries find ways to reduce their economic reliance on oil.
Tags: Saudi Arabia
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The oil patch is abuzz with rumor and speculation concerning the April 17 meeting of OPEC and non-OPEC oil-producing nations in Doha, Qatar.
Oil prices have been swinging up and down seemingly without reason. This volatility will continue in the short term, but the foundation for long-term price stabilization is being laid behind the scenes.
U.S. crude inventories are sitting at record highs of around 2.05 billion barrels right now.
That’s not a surprise. After all, there’s a lingering global crude glut.
The energy sector’s top three objectives are admittedly essential for both economic development and acceptable human life.
Just one thing is clearly on the minds of every money kingpin in London… the current “breakout” in oil prices.
After a hefty rise of 46.9% for the month through close last Friday, WTI crude fell for two consecutive sessions to start the week.
As always, pundits with no real experience in the industry will blame the “glut” – but excess supply on its own is not responsible for today’s oil conundrum.
There’s a lot of conversation about the energy sector’s accelerating debt crisis. The bottom line is simply this.
Regardless of where the crude oil price moves from here, there is little likelihood that any rise in the level will be large (or happen soon) enough to save most companies mired in a vicious cycle of ever more debt.