Tuesday, September 1, 2015
OPEC willing to talk to other oil producers, but vows to protect own interests.
OPEC ready to talk to other oil producers, vows to protect own interests.(Taz).
OPEC stands ready to talk to all other oil producers, but this has to be on a level playing field, the cartel said in its report published on its official website.
“OPEC will protect its own interests. As developing countries, its members, whose economies rely heavily on this one precious resource, can ill afford to do otherwise,” the report said.
OPEC stressed that today’s continuing pressure on oil prices, brought about by higher crude production, coupled with market speculation, remains a cause for concern for OPEC and its members.
“Apart from the obvious loss of much-needed revenue required for member countries’ socio-economic development, there are growing fears that, under the current low-price scenario, investment in future capacity additions will continue to be shelved or cancelled altogether,” OPEC said.
With the long lead times associated with bringing new oil to market, the industry cannot afford a lapse in spending, particularly in view of the long-term expectations for oil demand, which point strongly to a considerable rise in world oil consumption over the next two decades at least, according to the report.
Failure to invest now could mean prices in the coming years spiking to levels inconsistent with what is considered ‘reasonable’ for both producers and consumers, OPEC believes.
“There is no quick fix, but if there is a willingness to face the oil industry’s challenges together, then the prospects for the future have to be a lot better than what everyone involved in the industry has been experiencing over the past nine months or so. Only time will tell,” OPEC stressed.
Global oil market experienced a historic price fall as US oil prices fell below $40 a barrel on Aug. 28 for the first time since the 2009 financial crisis.
OPEC is not due to meet until Dec. 4.
Saudi Arabia, the world's top oil exporter, and other Gulf states pushed OPEC's strategy shift last year to defend market share rather than cut output to support prices. Hmmm.....I said it before and say it again, 'Iran will use it's huge stockpile as leverage to gain back their OPEC Share, if OPEC doesn't give in to their demands the will dump all their stocks on the market crashing the OIL market prices.' Nobody wants $20/Barrel prices.