Bloomberg: OPEC’s plan to boost oil prices by cutting production has fizzled, yet it has little choice but to stick with it.
Crude has surrendered all of its gains since the Organization of Petroleum Exporting Countries first agreed production cuts in November. While the group has implemented the curbs, a rebound in U.S. shale output and stubbornly-high stockpiles show the world’s three-year crude glut isn’t shifting. Even signals from Saudi Arabia and Russia that they’ll prolong the supply reductions haven’t staunched the rout.
Yet OPEC has limited room for maneuver when it meets on May 25 in Vienna to discuss the deal, and is almost certain to persevere because the alternatives look even worse. If it were to deepen the cutbacks, even more shale supplies might come along to fill the gap, according to UBS Group AG. Abandoning the policy and restoring output would inflict the economic pain of crude below $40, Citigroup Inc. predicts. read more
The Kingdoms have fallen. Can’t wait for this years arab spring to kick in to high gear. It’ll be interesting to see all the lil Saudi boys trying to drift in their gold plated Prius’s.
Since they’re out of water….they can drink their oil for all i care.
My heart bleeds – $2.25/9 midgrade…
Phuckem. Let them cry on their camel’s backs.
Try eating sand again.
How many jewel-encrusted Bentleys does one need?
can we still call them sand n-worders? Or is that politically incorrect too?
No doubt they’ll become a technological powerhouse like Israel – real soon….