April 10th, 2015
It’s been a momentous week in the oil industry…
Oil prices plunged 6%. U.S. crude stockpiles rose to record levels. The contest for market share within OPEC intensified, prompting rumors of a new oil cartel. And Europe’s largest oil company settled the industry’s biggest deal in at least a decade.
That’s why CCTV-America brought in Dr. Kent Moors.
In the following video, Kent explains why oil price levels will rise over the long term, why oil producers aren’t cutting back despite an oversupply, why the Saudis are putting pressure on OPEC, and why rumors of a new cartel are unfounded.
Plus, he shares his insights on the $70 billion Royal Dutch Shell/BG Group deal and why this won’t be the only M&A deal in the near future. To watch, click here.
April 9th, 2015
Saudi Arabia just sent the most powerful signal yet it means business in the “Oil War.”
On Tuesday, oil minister Ali al-Naimi revealed Saudi oil production jumped in March to 10.3 million barrels a day.
That marked an increase of 700,000 barrels per day from February, or the biggest ramp in production since November 2011. That figure is now expected to remain around 10 million barrels for some time.
To add some intrigue, the minister also mentioned the kingdom was prepared to “improve prices,” but only if producers that are not members of OPEC decided to join in the effort.
Since then, oil prices have paused from their steady upward climb.
Brent closed yesterday in London at $55.79; West Texas Intermediate (WTI) in New York at $50.67. Both were down over 5% for the day.
So what are the Saudis really up to?
Here’s my take on the kingdom’s latest salvo…