Although oil would surpass $200 per barrel under its high-price scenario, the EIA sees little effect in curbing demand growth.
When discussing the “success” surrounding OPEC’s cuts, it’s important to remember where the market was at the beginning of 2016, when prices fell below $30. Now, prices are in the mid-$50s, reflecting the impact of OPEC's actions.
The spread between benchmarks Brent and WTI has widened recently, a reflection of a sharp increase in U.S. shale production this year at a time when OPEC is cutting back.
'Fuel economy regulations are a preemptive strike against collusion and market-distorting behavior. In fact, current regulations will eliminate 12 billion barrels of oil imports between 2015 and 2040.'
From changing the dollarized oil market to relationships with major Middle East producers, China's growing clout in the oil trade has manifold impacts for American interests.
Ed Hirs, an energy economist from the University of Houston, talks to The Fuse about the dangers of oil supply disruptions and OPEC's impact on shale.
The current stability is relatively rare for the oil market, which is prone to rampant volatility for numerous reasons. When the market eventually breaks out, it could do so aggressively.
Here are four charts that illustrate the links between petrostate activities, U.S. foreign policy interests, and oil supply security.
Libyan Oi Minister Mustafa Sanalla has facilitated a five-fold increase in oil production over the last year from a low of 200 thousand barrels/day last summer to 1.1 million b/d in recent weeks, despite prevailing chaos and rival governments.
Venezuela has fallen apart as a result of corruption and ineptitude, but even more so because of its over-reliance on oil as a revenue source. Some 95 percent of the country’s export revenue comes from oil.