Oil price is going down

June 5, 2015 HASSAN No comments exist

Oil price is dwindling since this summer due to many factors ,that is good for the consumer but bad for some producers like Russia Algeria Iran Venezuela ….etc ,some golf officials said if USA and Russia want high price they must be part of the solution ;the price must be attractive for that level of investment in the sector to continue .
with USA shale production we have a big chess game ,Russia joined Venezuela and Mexico to meet Saudi Arabia oil minister to plan a reduction of oil production from OPEC members by one million barrel a day ,but golf countries said non-OPEC producers must cut first before asking golf countries to join the move ,as you see it is difficult to reach a consensus in this scabrous affair ,Russia is saying it is ready to reduce its production although it is not an OPEC member in order to raise oil price ,Russia finance minister said dwindling oil price is costing Russia 100 billion dollars a year .
It seems everyone is worried about oil price but no one is ready to take a decisive action ,as you know among five huge oil producer (USA ,Saudi Arabia, china ,Russia ,Canada) ,there is only one OPEC country ,if for example Saudi Arabia cuts production the main beneficiaries will be USA Russia ….etc .
It is very difficult to reach an agreement ,as some OPEC members cheat on their quotas ,some countries could content themselves with an oil price of 60 dollars as long as the dollar is strong ,and the market is oversupplied ,as for the consumers throughout the world they will applaud oil price bellow 70 dollars.

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