Friday, 4 August 2017

Oil demand and supply: Battle still on

Saudi Arabia’s then Oil Minister Ali al-Naimi had once said that “whether it goes down to $20, $40, $50, $60, it is irrelevant,”. This was when Saudi Arabia had tried to run US shale producers to the ground by driving the price as low as possible
Ali al-Naimi's strategy did not work and he lost his job.
Saudi Arabia, in the face of quickly declining foreign exchange reserves, is trying to shore up the market by leading production cuts
The website carries here an interesting picture of declining crude prices in relationship with the decline in Saudi foreign exchange assets
But the battle is not over yet between US shale and Saudi oil

When will demand begin to fall?


The advent of electric cars is meant to cause demand to begin a downward slide
But when is that going to happen remains a moot point
While some say that the point of inflexion can happen sooner than later, there are a lot of others who say that this point is not coming anytime soon.

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