OPEC's crude oil pricing power weakened due to the

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The shale revolution weakened the pricing power of OPEC crude oil

the shale revolution weakened the pricing power of OPEC crude oil

November 10, 2014

[China paint information] the crude oil output of the organization of Petroleum Exporting Countries (OPEC) accounted for about 1/3 of the world oil market, and was once a powerful role in the crude oil market. However, due to the rapid increase of production in non OPEC countries, OPEC is losing its ability to price crude oil

at present, the international oil price has fallen by about 27% from the peak in June this year. The economies of the 12 OPEC member states are mostly closely related to oil prices. After the sharp fall in oil prices, many oil producing countries are facing huge economic and financial risks. OPEC will hold a ministerial meeting on the 27th. The market is concerned about whether OPEC will limit production and ensure prices after this round of sharp decline in oil prices

at present, the global daily oil consumption is about 90million barrels. OPEC has decided to maintain its daily oil production at 30million barrels since 2011, and this limit has been maintained until now. However, the actual output of OPEC countries exceeded this target. The market expects OPEC's daily average crude oil production in October to reach 30.97 million barrels, the highest in 14 months

Gong Dawei, the commodity fund manager of Deutsche Bank, told that in the long run, the sharp fall in international oil prices was mainly due to the sharp increase in crude oil production in the United States and Canada, benefiting from the shale oil revolution. Crude oil production in other global markets is also in a healthy state, including crude oil production in volatile regions such as Libya, Iran and Iraq

the rise of the output of non OPEC countries has squeezed OPEC's market share by the loosening and cracking of components, resulting in the failure of parts, and even causing huge losses. The world crude oil outlook report released by OPEC last week pointed out that it is expected that the crude oil production of non OPEC countries will increase significantly in the next few years, and the market demand for OPEC crude oil will drop from an average of 30million barrels per day in 2013 to an average of 28.2 million barrels per day in 2017

some oil producing countries have overcome problems such as flow marks and welding lines that have plagued customers. In order to compete for market share, the main oil producing country Saudi Arabia lowered the official price of crude oil exported to the United States on the 3rd of this month. Market participants regard this news as a price war taken by Saudi Arabia to compete for market share

according to the US energy information administration, the average daily net import of crude oil in the first eight months of this year was 5.2 million barrels, compared with 12.6 million barrels in 2006

some analysts pointed out that in August this year, the process of functionalization and high-performance of modified nylon will be promoted. In August, the average daily crude oil imported by the United States from Saudi Arabia, a major oil producer, was 890000 barrels, accounting for 4.6% of U.S. crude oil consumption, compared with 7% last year

the decline in oil prices poses risks to the economies of oil producing countries. Saudi prince al Walid, a billionaire, pointed out in an open letter released in October that 90% of Saudi Arabia's fiscal revenue in 2014 came from oil, and Saudi Arabia should be worried about the decline in oil prices. Gongdawei predicts that the next three months will be a change in skills. Lunt's oil price is in the range of US dollars and New York's oil price is between US dollars. The market has increased volatility and is very sensitive to the news. He pointed out that low oil prices are good for crude oil consuming and importing countries, but will have an impact on the financial situation of crude oil producing countries

A recent report by Barclays, a Wall Street investment bank, pointed out that the expected reduction in OPEC production is not enough to change the oversupply in the crude oil market. Goldman Sachs believes that OPEC is losing its say in crude oil prices due to the increase in shale oil production in the United States

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