Are low crude oil prices a “boom or a curse” for the world economy? lweb.es/f739
OEF REVIEW:“The energy markets are tanking and are at levels that have not been seen since “The Recession” of 2009. Opinions are divided on the effects of the fall. Some say it is good for consumers, whereas, others say it is bad for the global economy. This article will analyze the overall effects of low crude oil prices on the industry, the major oil-producing nations, consumers and the overall global economy.
OEF REVIEW:“If there is a war confronting Iran and Saudi Arabia, oil could overnight go to above $250, but decline [back] down to the $100 level,” (…) “If they attack each other’s loading facilities, then we could see oil spike to over $500 and stay around there for some time depending on the extent of the damage.”
OEF REVIEW:Oil prices crashed 6 percent on Friday to close below $30 a barrel for the first time in 12 years, resuming this year’s breathtaking rout as Chinese stock markets fell further and traders braced for an imminent rise in Iran’s exports.
OEF REVIEW:Venezuela depends on oil for about 96% of hard currency revenues. The average price for its basket of oil and refined products fell this week to US$24.38, its lowest in more than 12 years
OEF REVIEW:A potential initial public offering is under review for Saudi Arabian Oil Co., also known as Aramco, Mohammed bin Salman, the kingdom’s deputy crown prince, said in an interview with The Economist. A decision will probably be taken in the next few months, he said, without giving further details. “Personally I’m enthusiastic about this step,” Salman said. “I believe it is in the interest of the Saudi market, and it is in the interest of Aramco” by helping to promote transparency and counter corruption, he said. “This is an epochal change in the oil industry,” said Bob McNally, founder of Washington-based consultant The Rapidan Group and a former senior White House official. “Saudi Arabia is getting ready to ride the oil-price roller-coaster, not control it.”
OEF REVIEW:The oil tanker that left the Port of Corpus Christi, Texas, late last week is the bearer of the first freely traded U.S. crude in about four decades – made possible by congressional legislation that President Obama signed to end a 1970s-era ban on exports. It’s a new day indeed.
OEF REVIEW:The International Energy Agency’s Monthly Oil Report provides an overall view of the state of the international petroleum market and projections for oil supply and demand 12-18 months ahead. These are the IEA’s highlights of the current report.
OEF REVIEW:The BP Group’s Chief Economist, Spencer Dale, considers the following questions in his very enlightening paper: What should we make of the shale revolution?, How will the rebalancing of the Chinese economy affect demand?, What are the implications of the dramatic fall in oil prices over the past year or so?
OEF REVIEW:Russian president Vladimir Putin met with Saudi Defense Minister in Sochi on October 11th, while Russian Foreign Minister Sergei Lavrov was holding a meeting with his Saudi counterpart. The parties discussed Syria and agreed upon the necessity to prevent the creation of a terrorist caliphate. The levers of a hypothetical Russian-Saudi deal would be: a rise in oil prices, possibly accompanied by Saudi arms purchases, and on the Russian side, the guarantee that Assad will leave after a transition period, along with some kind of a Saudi “right of scrutiny” on Russian arms sales to Iran.
OEF REVIEW: China’s president Xi Jinping has made major pledges in foreign aid, and Africa will foreseeably benefit greatly from the new packages. Even though developing countries and the development community have welcomed the aid pledges there has been harsh criticism of them from within Chinese society.
OEF REVIEW:“Moody’s defines China’s rebalancing challenge as the need to engineer economic restructuring, policy reform, market liberalization and slower credit uptake with the aim of shifting economic growth drivers away state-led investment – all without sacrificing short-term macroeconomic stability.” “As the authorities are — we believe — prioritizing stability in the current environment, the likelihood of a slowdown in policy reform is increasing,” says Rahul Ghosh, a Moody’s Vice President and Senior Research Analyst.