Revisiting global economic activity and crude oil prices ...
Global Oil Prices
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Increased global supply started putting pressure on the price of oil (i.e. prices started to decline due to increase in supply) • Everyone expected OPEC to intervene and cut production to stabilize oil price. • Fearing loss of market share by cutting production ○ Saudi Arabia, one of the biggest producers - chose not to cut production putting further pressure on oil prices. • These reduced prices are also putting pressure on other major oil producers like Russia, Iran and Venezuela whose cost of production are much higher in comparison to Saudi Arabia (lowest cost of production) • Global Oil Prices Wednesday, October 7, 2015 2:56 AM petrol and natural gas Page 1
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Transcript of Global Oil Prices
Increased global supply started putting pressure on the price of oil (i.e. prices started to decline due to increase in supply)
•
Everyone expected OPEC to intervene and cut production to stabilize oil price.
•
Fearing loss of market share by cutting production
○
Saudi Arabia, one of the biggest producers - chose not to cut production putting further pressure on oil prices.
•
These reduced prices are also putting pressure on other major oil producers like Russia, Iran and Venezuela whose cost of production are much higher in comparison to Saudi Arabia (lowest cost of production)
•
Global Oil Prices Wednesday, October 7, 2015 2:56 AM
petrol and natural gas Page 1
