RE:Oil down againReaching a sustainable equalibruim price can be very messy in the short term as many marginal producers could be hedged at higher prices, etc. We need to see oil prices go low enough for long enough that significant capacity is taken off the market given the supply glut. Too much shale oil, and other, as well as Germany and Japan going into recession and a weakening China and global growht generally could create interesting circumstances.
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By
Sarah Kent And
Benoît Faucon
Updated Oct. 10, 2014 7:35 a.m. ET
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LONDON—Oil production from the Organization of the Petroleum Exporting Countries in September rose to the highest level since the summer of 2013, despite a sharp slide in oil prices that has raised uncomfortable questions about whether the group should reduce its oil output.
In its closely watched monthly oil market report published Friday, OPEC said its oil production rose by 402,000 barrels a day last month to total 30.47 million barrels a day, citing secondary sources. The increase was led by higher output in Iraq and Libya which more than offset a slight decrease in Saudi Arabia’s production of 50,000 barrels a day.
The increase in the group’s output at a time when oil prices are in free fall could
<:section class="sector two column col10wide" sizset="false" sizcache043718222279080076="15 10 95">
By
Sarah Kent And
Benoît Faucon
Updated Oct. 10, 2014 7:35 a.m. ET
<:article id="articleBody" class="module articleBody" sizset="false" sizcache043718222279080076="15 10 104" itemprop="articleBody">
LONDON—Oil production from the Organization of the Petroleum Exporting Countries in September rose to the highest level since the summer of 2013, despite a sharp slide in oil prices that has raised uncomfortable questions about whether the group should reduce its oil output.
In its closely watched monthly oil market report published Friday, OPEC said its oil production rose by 402,000 barrels a day last month to total 30.47 million barrels a day, citing secondary sources. The increase was led by higher output in Iraq and Libya which more than offset a slight decrease in Saudi Arabia’s production of 50,000 barrels a day.
The increase in the group’s output at a time when oil prices are in free fall could make for fireworks at its semiannual meeting in Vienna next month, where members will discuss behind closed doors whether to rein in output in the face of declining prices.
make for fireworks at its semiannual meeting in Vienna next month, where members will discuss behind closed doors whether to rein in output in the face of declining prices.