03-19-2015, 11:01 PM
Soon after the OPEC meeting, various theories were put forward about OPEC's and Saudi Arabia's intentions. The conspiracy theory shifted completely. From being against Russia and/or Iran, to being all about hurting US shale oil production. And others said OPEC was dead! It was like staring into a mirage. It was all nonsense, but it does have an impact on the direction of the oil price, at least for a couple of weeks. Instead, he said, the decision not to cut production was taken because non-OPEC producers (specifically, Russia and Mexico) would not agree to cut in a meeting the day before the official OPEC meeting.
A Saudi oil adviser thinks the oil price is going higher - Business Insider
Yet OPEC is underestimating one of the most important characteristics of shale: its incredible flexibility. Unlike traditional producers, shale companies can easily stop pumping on completed wells when prices drop and then quickly return to them. When prices rebound, so should U.S. production, making dips in output short-lived.
Why OPEC can't kill off the U.S. oil boom - Mar. 17, 2015
Algeria is seeking to coordinate a global response from oil-producing nations to tumbling prices, Algeria Press Service reported, citing Energy Minister Youcef Yousfi. Crude fell to a six-year low in New York on Monday.
Algeria seeks global oil producers’ accord to halt price decline
Crude oil inventory data for the week ending February 20 show that total utilization of crude oil storage capacity in the United States stands at approximately 60%, compared with 48% at the same time last year. Most U.S. crude oil stocks are held in the Midwest and Gulf Coast, where storage tanks were at 69% and 56% of capacity, respectively, as of February 20. This capacity use calculation reflects only crude oil stored in tanks or underground caverns at tank farms and refineries, and excludes some crude oil that is included in commercial inventory data, such as pipeline fill and lease stocks held in production areas.