Home > News > Social News > How will the oil keep the pric.....
Sport Product
Contact us
Jane
Tel:+86 13714507157
QQ:779144199

Bill:
QQ:1254792402

Maggie:
QQ:862595905

Shirley:
QQ:2234505663

Irene:
QQ:1439334916

Shenzhen Tiglon Technology Limited
Add:7F,Building C, Dongcai Runfeng Industrial Zone, Gushu, Xixiang Town, Bao'an District, Shenzhen, China. 
Contact Now
Contact us
Jane
Tel:+86 13714507157
QQ:779144199

Bill:
QQ:1254792402

Maggie:
QQ:862595905

Shirley:
QQ:2234505663

Irene:
QQ:1439334916

Shenzhen Tiglon Technology Limited
Add:7F,Building C, Dongcai Runfeng Industrial Zone, Gushu, Xixiang Town, Bao'an District, Shenzhen, China. Contact Now

News

How will the oil keep the price low ?

  • Author:Lisa
  • Source:www.tigloncn.com
  • Release on :2014-10-21
How will the oil keep the price low ? The US holds the key.

Unlike conventional oilfields, the tight oil being produced there requires continuing investment in new wells to maintain production. Lower prices make such investment less attractive – but the effect may be smaller, and slower, than many people think. Some new fields become uneconomic if the oil price falls much below $90 – higher than it is today. But most of them are economic at $75 or well below that. Of course, if oil prices fall further, the impact will be greater.


Only one country, Saudi Arabia, can cut its output by enough to balance the market. This summer it reduced production by 0.4m b/d in response tomarket conditions. Like everyone else, the Saudis are assessing how far the price will fall and how to respond. But they are unlikely to make large unilateral cuts that would allow Iraq, Iran or other countries to gain market share. With almost $800bn of foreign reserves – compared to an annual revenue loss of under $40bn at current prices – they have the staying power to endure the cycle. Further declines could lead Opec countries to try to cut production in concert, but there will be much arguing about at what level each country should cut back from. They may not even reach an agreement at their next meeting on November 27.


 (Welcome to our website: www.tigloncn.com to check more news and CAR-DVR product information )