If opec decides to cut oil production, since crude oil prices are below $60. How will this impact future/present oil stock earnings ex. xom,chev,axas,apl? I’ve also learned Russia has bout 25% of the worlds oil, and now they are extremely upset
If OPEC announces production cuts it will cause oil price to increase somewhat. However, if everything else remains the same it probably will not last long. If oil production cuts are successful prices will go up if oil inventories decrease But OPEC nations cheat! That is why production cuts usually aren’t very successful. Saudi Arabia’s production costs are less than $10 a barrel. They are still making plenty of money and they want a certain amount of dollars flowing in every month. Concerning Russia,their production cost are high.
Russia needed a price of almost $90 a barrel to make anything.That is why they are upset about today’s prices.
October 30th, 2009 at 5:27 pm
With the falling demand for oil its probably only going to stem the price fall somewhat, but not stop it.
References :
October 30th, 2009 at 5:48 pm
If OPEC announces production cuts it will cause oil price to increase somewhat. However, if everything else remains the same it probably will not last long. If oil production cuts are successful prices will go up if oil inventories decrease But OPEC nations cheat! That is why production cuts usually aren’t very successful. Saudi Arabia’s production costs are less than $10 a barrel. They are still making plenty of money and they want a certain amount of dollars flowing in every month. Concerning Russia,their production cost are high.
Russia needed a price of almost $90 a barrel to make anything.That is why they are upset about today’s prices.
References :