OPEC’s expectations for a significant decline in global oil stocks for the rest of 2017 and into 2018 have been upended by new forecasts showing sharply lower demand for the producer group’s crude for the second half of 2017 and the first quarter of 2018.
OPEC and its non-OPEC oil producing counterparts cemented a new era of cooperation at their May 25 meeting in Vienna, reaching a unanimous decision to extend their production agreement aimed at reducing global oil stock levels through March 2018.
OPEC delivered on its pledge to rein in crude oil production in January, signaling a promising start to what will certainly be a challenging six months as the group works to accelerate the rebalancing of global stocks and prop up prices.
OPEC is reaping the rewards of stronger oil markets following its historic agreement with key non-OPEC producers to rein in crude production aimed at rebalancing oversupplied markets and supporting oil prices in a higher trading range in 2017.
A protracted period of dramatically lower oil prices has ushered in momentous challenges for Gulf Arab states and oil producing countries around the world.
The international oil market has undergone a paradigm shift since the advent of cutting-edge technology used in the development of nonconventional shale oil in the United States.
The extraordinary resilience of U.S. shale oil production continues to confound forecasters, leading to flawed market analysis and undermining OPEC’s strategy to force higher cost producers to shutter output in the lower oil price environment.
In June 2014, the price of oil, projected to continue increasing to at least $125 to $150 per barrel WTI, collapsed within six months to just under $50 per barrel.
This event focused on the recent dramatic fall in the price of oil, the motivations behind OPEC’s decision to maintain production levels, and the implications of low oil prices for shale producers, offshore drilling, and alternative energy development.
Through its careful examination of the forces shaping the evolution of Gulf societies and the new generation of emerging leaders, AGSIW facilitates a richer understanding of the role the countries in this key geostrategic region can be expected to play in the 21st century.Learn More