Will record production cuts stop the oil price slump? I Inside Story
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- Опубликовано: 15 окт 2024
- Demand for oil has collapsed due to the coronavirus pandemic.
Planes are grounded, factories are shut, and cars are off the roads in many cities under lockdowns.
Oil prices fell below $30 a barrel, and dropped further when major producers Saudi Arabia and Russia couldn't agree on cutting output.
Now they've set aside their dispute.
OPEC and the oil cartel's allies agreed to a 10 percent production cut, the biggest ever.
But the deal to switch off the taps by 10 million barrels a day still needs approval from Mexico.
Some analysts warn production cuts will hurt smaller nations that depend on oil revenues.
How should these challenges be managed?
Presenter: Bernard Smith
Guests:
Alex Schindelar - President, Energy Intelligence, an oil & gas research company
Antoine Halff - Senior research scholar at the Center on Global Energy Policy, Columbia University
NJ Ayuk - Chairman, African Energy Chamber
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Unless economies start operating again, any cuts are meaningless and will have no effect on the price because it’s a demand problem not a supply problem
well depends by how much they decrease production we still using oil just alot less then before. demand is not a problem if supply is lower.
You don't think supply has an effect in supply and demand economics?
Saudi Arabia and Russia went from saying they can go months with their price war because of their reserve cash to......we have to do this to balance the market.
One is saying that "Saudi has shipped out a lot of tankers but he expects they will not find a lot of buyers", he's not understanding the tanker part. The tankers are not hired for shipping the oil to potential customers but to be used as storage facilities as all other storage facilities are full. In a case like this, they hire Tankers as a storage facility.
Isn't production cuts basically manipulating market through monopoly? That's illegal in most of the developed world.
Agreed to stop production or agreed that no one had anymore storage space for the excess?
@@ChristophBackhaus 4 weeks for north america
@@ChristophBackhaus yea last a heard anyway pretty sure it was less then a week ago i read that, keep in mind also that oil usage sould start to increase slowly as gouverments start to open stuff back up, seems trump is itching to start the machine soon lol.
If you can’t get any places to store the production, there are many countries in crisis of oil, for example like Sudan, people stay in the queues over 5hours to 5L of fuel,even sometimes they can’t anything of fuel with their own money.
problem with those places is you risk getting a rocket in the face when you try to get the fuel there.
Eventually the prices will go up but not by much
New normal oil price at around $10 per barrel for the next twenty years.
I suspect not. Low peice long enough for saudis to buy up US shale. Aka 3-6 months
@@Davidka1978Xoroshiy ... interesting Saudis buy up US shale. We shall see.
@joebob ... not sure what the Saudis would do now. We shall see in coming months whether they will sell the shale refineries.
So supply is being stunted to keep the price high.
The Federal Reserve needs the 10 year over 1% and SOON. The value of the dollar is tied to oil and they will NEVER let it stay this low. Do not ever bet against the Fed. They have the reserve currency, a printing press , and the US military. Oil WILL go back up.
I hope that the world stop the consumption of oil.
You do realize that oil is used for more than transport, right? If we stop oil consumption, everyday materials like plastic can't be manufactured. Stopping oil consumption has far wider implications than you think.
Charleston PintoI I only want to stop on the use for cars but for the rest of it’s use I’ll be fine with that,your right it has many usage.
Oil is history electric cars are out future. We won’t have these crisis probs wig electricity. Look at oil and the covid 19
ANTRASIX - BEATS PRODUCTION HOUSE 👍
I hope the 10 percent cut works. Sounds like it's the best they can do for now.
I find it absolutely flabbergasting to hear these people talk like there will be a rising demand for oil forever. Even talking about new exploration. The demand for oil will significantly fall in a structural way. It is only their insidious oil lobbies in the West that are keeping demand high, otherwise clean energy sources would have been much more widespread. In my country, The Netherlands, our prime minister is stating he wants a transition towards clean energy but thanks to his friendship with oil people, he has made it unduly difficult to create clean energy. The Dutch people want to be on top of the list of European countries using clean energy, but they are at the utter bottom thanks to our PM. This perfidy of oil people is the reason why a majority of people in the West hate oil. Oil keeps the wrong people in power, especially in the Middle East, it corrupts, it destroys, and it prevents alternatives to be developed.
Not if no one's driving cars atm.
This is more of an artificial fix. Exactly the opposite should have happened but it didn't.
This whole dependency on oil must stop. Oil has caused too much trouble in the world in terms of human suffering and environmental destruction. Prices will never go up again. A precipitation towards clean energy is unstoppable. Nobody except some sheiks and banks and oil billionaires want oil to continue to be the principle energy source. Same with coal. People HATE the trouble Arabian oil is causing, which is the big elephant in the room nobody is talking about. As far as most denizens of the world are concerned, oil will be phased out and prices could go negative indefinitely. You should understand that the cost of fossil fuels, oil and coal, to the society have never been and are never factored in into the price of oil or coal. Environmental costs and the costs of climate change run in the many trillions. No coal mine owner and no sheikh is going to pay a dime for that. It is very unfair.
- So Hu will be most affected.
- Right to the chase. I like that.
@@mortalzeus6519 I think you are right. But I was trying to make a joke. Hu is the former President of China.
MEXICO RULES OVER SWEET PRINCESS
Hope this stops US from waging wars and supporting "rebels".
Send the oil to poor countries. It is time to do some community work
Mexicans have finally been persuaded to come onboard and accept the deal. A special shoutout to Trump.
Angola and Mozambique is to most expensive no refinaries and lots of corruption Isabel dos Santos kke all money to luxauary no money to most expensive
Oil up $CHK and gold down $DUST
South Africa and Africa have no possiblity no mieny in system
Make your next car electric then you will not have worry about the price of crude oil.
Oil should have a minimum price,say $50 we need to reduce our long term consumption and stabilise the price.
OPEC just lost market share to the Russians and Iranians for direct non-dollar sales which will eventually lead to non-Arab OPEC members to jump ship. Russian/Chinese/Iranian oil trade alliance coming soon.
USA included? Russia? Not clear.
YES cut oil production to 0% The world can then go to SOLAR and save the planet. :)
Africa have to be aut from the west investors or they have to follow like chad 🇹🇩 🇹🇩 kick aut the western company and control it by themselves don’t worry about spares parts the Chinese they will made it 😂😂