for Saudi Arabia
OPEC members are split over whether to change strategy, as global oil markets are trading just under $80 per barrel and consuming countries are pressuring producers to increase output.
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In today's global oil market, price movements, in either direction, are largely dependent on OPEC's actions and verbal intervention. Current political and market dynamics make it clear that shale was never a panacea.
Although Saudi Arabia is seeking to launch an IPO of its state-owned oil company and wants to overhaul its entire economy, foreign investors may balk at the opportunity.
President Trump’s tweet Friday morning shifted the debate about rising gasoline prices, the effects on American consumers, and OPEC’s role in the global oil markets.
The Saudis continue shifting its goals for where oil prices should be. The Kingdom is now signaling that it wants to increase prices to $80-$100 per barrel in order to enhance the valuation for its planned initial public offering.
A SAFE analysis shows that there were 1,480 terrorism incidents against oil and gas facilities worldwide between 2011 and 2016, a 387 percent increase from twenty years ago.
Modernized fuel-efficiency standards have been a cornerstone of energy policy since the 1970s, reducing the negative effects of petrostates on the U.S. economy.
Circumstances in the oil markets are expected to change, perhaps dramatically, early next decade. While U.S. production is expected to grow by a massive 2.5 Mbd in 2018-19, increases will thereafter slow considerably.
Although they have been caught off guard by U.S. growth, OPEC members and their non-OPEC partners have successfully regrouped and will likely be well positioned if fundamentals eventually tighten even more.