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Crude oil: Light at end of tunnel

Kunal Shah 

Crude oil prices crashed during 2015 and made lows of $26 a barrel for the WTI crude and $29 a barrel for Brent crude, mainly due to the glut in supply. The Organization of the Petroleum Exporting Countries (Opec) meeting changed the oil markets, both dramatically and structurally. It began with Saudi Arabia relinquishing its supply management role and leaving the market to rebalance itself through prices. I have always believed the main reason for the sharp fall in prices was because it hovered between $90 and $110 for too long during 2012-2014, even as US crude oil production was moving up ...

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Crude oil: Light at end of tunnel

Crude oil prices crashed during 2015 and made lows of $26 a barrel for the WTI crude and $29 a barrel for Brent crude, mainly due to the glut in supply. The Organization of the Petroleum Exporting Countries (Opec) meeting changed the oil markets, both dramatically and structurally. It began with Saudi Arabia relinquishing its supply management role and leaving the market to rebalance itself through prices. I have always believed the main reason for the sharp fall in prices was because it hovered between $90 and $110 for too long during 2012-2014, even as US crude oil production was moving up sharply.Oil prices should have gradually declined during 2012-2014 but did not. So, during 2015, the fall was exceptional. During 2015, the global oil market was in surplus, which was as high as 1.8 million barrels per day (mbpd), though during 2013 this surplus was 0.52 mbpd. This surplus resulted in capitulation in crude oil prices at the end of 2015.US crude oil production, which peaked in 2015, Crude oil prices crashed during 2015 and made lows of $26 a barrel for the WTI crude and $29 a barrel for Brent crude, mainly due to the glut in supply. The Organization of the Petroleum Exporting Countries (Opec) meeting changed the oil markets, both dramatically and structurally. It began with Saudi Arabia relinquishing its supply management role and leaving the market to rebalance itself through prices. I have always believed the main reason for the sharp fall in prices was because it hovered between $90 and $110 for too long during 2012-2014, even as US crude oil production was moving up ... image
Business Standard
177 22

Crude oil: Light at end of tunnel

Crude oil prices crashed during 2015 and made lows of $26 a barrel for the WTI crude and $29 a barrel for Brent crude, mainly due to the glut in supply. The Organization of the Petroleum Exporting Countries (Opec) meeting changed the oil markets, both dramatically and structurally. It began with Saudi Arabia relinquishing its supply management role and leaving the market to rebalance itself through prices. I have always believed the main reason for the sharp fall in prices was because it hovered between $90 and $110 for too long during 2012-2014, even as US crude oil production was moving up ...

image
Business Standard
177 22