Tuesday, January 12, 2016

OPEC waiting for US oil companies’ bankruptcy, then cut production and raise prices.


OPEC waiting for US oil companies’ bankruptcy, then cut production and raise prices. (Taz).

OPEC will cut crude production and export in order to raise oil prices, after the US companies extracting hydrocarbons go bankrupt due to the current low energy prices, said Alexander Razuvayev, economist and director of the analytical department at Russian company Alpari.

Alpari is one of the leading companies offering forex trading in Russia.

"The price war will end sooner or later,” he told Trend Jan. 11. “We can expect positive changes this year. As a result of falling oil prices, budgets are running out, shale companies go bankrupt. Those, who survive the crisis, will take the new position on the market at comfortable prices."

He said that none of the largest oil producers will be able to work at current low prices for a long time.

Razuvayev believes that the current conflict between Saudi Arabia and Iran is unlikely to impact the world oil prices.

“There won’t be a massive clash between the parties,” Razuvayev said. “Iran has just been released from the sanctions. Saudi Arabia is weaker than Iran militarily. The sides do not need a war." Read the full story here.

Related:   Shale Producer Gets $1.4 billion Wall St. Help in Re-Arming for OPEC War

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