OPEC - what next?
I have been reading up on oil futures, strategies and predictions on the oil industry.
Here are my lingering questions that no one has been able to answer is:
- Why does Africa need OPEC?
- What is the need for OPEC?
- Why should a country be a member of OPEC?
- Is OPEC just another FIFA?
A new article i found with a new prediction is below.
"The losses will accelerate next year with a drop of 390,000 barrels a day in annual average production to 8.86 million barrels a day, according to the EIA. OPEC’s fortunes will improve as the U.S. declines, with the IEA predicting demand for the group’s crude climbing to 31.1 million barrels a day next year from 29.3 million in 2014."
Basically, slow down on oil production, wait until the price goes up by depleting reserves and then we are back where we were a few years ago, higher prices and then the cycle beings again with another crash?
If you look at oil price history, Jan 1946 - 1.2USD, 10yrs later it was 2.8USD, in 10yrs it doubled plus, 10yrs later it only went up by 0.1 = 2.9USD. Why?!
While yes, during '57-'58 prices did go upto 3.1, but what happened to make it spike? History says war.
Lets jump a few years, from '66-'73 Jul the price stayed around 3.1 - 3.6 and then in Aug '73 it went up to 4.3 - 0.70 increase...again, a few wars and ends to war.
Why does the oil price keep spiking during war? Same theory can be proven in recent times. The last was a threat of war that spiked the prices. Why?
Who profits from war? People? Politics? Companies? OPEC?
Do companies and OPEC need to make billions in profit?
Ops. Technical Geoscientist/Renewable Energy Consultant
6 年Nice article