Market gains 4pc as oil prices slump

Market gains 4pc as oil prices slump

By David Henderson

UK Guardian

September 23rd, 2013

Oil prices plunged on Thursday after Saudi Arabia’s Deputy Crown Prince Mohammed 바카라bin Salman said in a speech that a decision by the OPEC cartel would be taken in January, fuelling fears the group’s influence was being curtailed by the president’s push.

The price collapse – which came just hours after analysts estimated that a decision on whether to lower production could come in January – came on the eve of a key oil meeting in Vienna, when OPEC delegates had expressed concerns over the impact on prices of cutting output.

Oil fell 6pc to $53.14 a barrel, its lowest level since January 2012 as the market suffered the impact of a drop in oil prices and fears that production could be cut.

The drop came as analysts said the likelihood of OPEC making a cut to output this year after a plan to freeze production in mid-2016 was on the cusp of falling apart. The oil price slump added another layer of worry to the global outlook.

The drop in the price of oil, which was over £30 a barrel on Friday, came on the heels of a meeting of the group’s OPEC ministers on Wednesday in Vienna, where the cartel’s decision makers did not agree on whether to continue raising oil prices or cut production from the nearly 10m barrels a day the group is currently pumping.

Saudi Crown Prince Mohammed bin Salman and his advisers believe they will find a way to find a way to maintain supply, even as the prices of crude oil continue to fall.

According to the Financial Times, the government’s plan to cut the number of rigs drilling for oil and gas by 500 rigs and the number of heavy equipment drilling by 40,000. The government has forecast a drop in oil production of 2m barrels a day between 2013 and 2015.

The ministers also agreed to step up work on upgrading ageing rigs to improve profitability, and to reduce the annual output of some fields by 25m barrels.

Mr Ban said he was „deeply interested“ jarvees.comin finding „a reasonable and secure oil future“ for all oil producers and not only on the cheap oil that is the primary source of income for some, the FT reported. But he warned that a combination of oil pric더킹카지노e falls and political decisions could lead to the market becoming uncompetitive in several major oil regions, such as the Middle East and North Africa, over the coming years.

„We remain firmly committed to oil-producin