“Just to cut production by 1.5 million barrels a day and the next day the price goes up and the other producers will take the whole share -- there is no benefit for OPEC in that,” he said.My heart bleeds....
High oil prices in recent years were an incentive for many high-cost fields to be tapped, Al-Atiyyah said. If shale oil companies were to collapse due to financial strain imposed by low prices, this might cause another crisis like the one in 2007 and 2008, as many of them owe large debts to banks, he said.
“OPEC can’t go out and fight on behalf of others,” he said. “You have one market. You don’t have an OPEC market and a non-OPEC market.”
Saturday, June 11, 2016
Shale Oil Seen Stifling OPEC’s Classic Market-Balancing Role
They talk like this is a bad thing! "Market balancing role" is dogwhistle for "keeping prices way higher than people can afford."