As Saudi Arabia continues to play tough by refusing to cut oil production, Russia and Iran find that they are too weak to resist selling at ever lower prices and crude just fell to its lowest point in five years.
The price of oil is down across the board these last couple of days, setting record lows not seen in five years. Brent crude dropped below $60 a barrel today and the futures fell below $54 a barrel yesterday for the first time since May 2009.
Last month, before the last meeting of the Organisation of Petroleum Exporting Countries (OPEC), we wrote that, beyond market forces driving the price of oil down such as a decelerating Chinese economy and an American fracking frenzy, influential governments are also pushing the price down as a form of economic warfare. By refusing to cut oil production at its own expense at the OPEC cartel meeting, Saudi Arabia proved that this is indeed the case.
The kingdom's geopolitical rivals and fellow energy producers, Russia and Iran, reveal that they are too weak at this point in time to cut their oil production or resist selling at ever lower prices.
The Russian Energy Minister, Alexander Novak, says that his country's oil production will remain steady in 2015 around 10.6 million barrels a day, at the same level it was this year. Suffering a devastating currency crisis and facing threats of more Western economic sanctions while maintaining a costly military involvement in Ukraine, it is no doubt that Russia, the worldβs biggest crude producer, can't afford to cut production at this time.
Iran is selling its light crude to Asian consumers at $1.80 a barrel, below the regional benchmark for January, Bloomberg quoted "people with knowledge of the decision." Its official selling price for December was at a premium of 13 cents. Locked in a sectarian struggle with Saudi Arabia, Iran has to support with hard cash the Syrian government and other regional actors. It is forced to sell its oil at a discount to Asia as Western sanctions limit its access to other markets.
So how low can the price of oil go? It seems "lower" is the right answer. The speculations in the American energy market say that most US shale gas producers need the price of oil to be at $60 or over to be competitive, but many have hedged their risks when prices were higher and can keep producing even when it is no longer that high for almost a year. If that is true, the Saudis will have to sustain sub-$60 prices for a while to scare American banks and investors away from financing any more shale exploration. With a reported $2 price of sweet crude production, that will not be a problem for the oil rich kingdom.
The next OPEC meeting is scheduled for June 5th, 2015.
The price of oil is down across the board these last couple of days, setting record lows not seen in five years. Brent crude dropped below $60 a barrel today and the futures fell below $54 a barrel yesterday for the first time since May 2009.
Last month, before the last meeting of the Organisation of Petroleum Exporting Countries (OPEC), we wrote that, beyond market forces driving the price of oil down such as a decelerating Chinese economy and an American fracking frenzy, influential governments are also pushing the price down as a form of economic warfare. By refusing to cut oil production at its own expense at the OPEC cartel meeting, Saudi Arabia proved that this is indeed the case.
The kingdom's geopolitical rivals and fellow energy producers, Russia and Iran, reveal that they are too weak at this point in time to cut their oil production or resist selling at ever lower prices.
The Russian Energy Minister, Alexander Novak, says that his country's oil production will remain steady in 2015 around 10.6 million barrels a day, at the same level it was this year. Suffering a devastating currency crisis and facing threats of more Western economic sanctions while maintaining a costly military involvement in Ukraine, it is no doubt that Russia, the worldβs biggest crude producer, can't afford to cut production at this time.
Iran is selling its light crude to Asian consumers at $1.80 a barrel, below the regional benchmark for January, Bloomberg quoted "people with knowledge of the decision." Its official selling price for December was at a premium of 13 cents. Locked in a sectarian struggle with Saudi Arabia, Iran has to support with hard cash the Syrian government and other regional actors. It is forced to sell its oil at a discount to Asia as Western sanctions limit its access to other markets.
So how low can the price of oil go? It seems "lower" is the right answer. The speculations in the American energy market say that most US shale gas producers need the price of oil to be at $60 or over to be competitive, but many have hedged their risks when prices were higher and can keep producing even when it is no longer that high for almost a year. If that is true, the Saudis will have to sustain sub-$60 prices for a while to scare American banks and investors away from financing any more shale exploration. With a reported $2 price of sweet crude production, that will not be a problem for the oil rich kingdom.
The next OPEC meeting is scheduled for June 5th, 2015.
Cheetah Fund Investors Lose $9 Million in Alleged Fraudulent Scheme
Network, Learn, Grow | FMAS:24
Network, Learn, Grow | FMAS:24
Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now π https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
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Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now π https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
π£ Stay updated with the latest in finance and trading!
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Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africaβs premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now π https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
π£ Stay updated with the latest in finance and trading!
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africaβs premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now π https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
π£ Stay updated with the latest in finance and trading!
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Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
π£ Stay updated with the latest in finance and trading!
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Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
π£ Stay updated with the latest in finance and trading!
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Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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