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Why Oil Prices Fall?

In: Business and Management

Submitted By caxal41
Words 1530
Pages 7
Oil price: traders and CEO’s clash over recovery prospects
OBJECTİVES
*What is the OPEC and it’s main goals?
*Why are oil prices falling?
*Who are the winners and who are the loosers?
*Consequences of falling prices.
*Important comments about oil price. What is the OPEC and it’s main goals? Organization of the Petroleum Exporting Countries (OPEC), a permanent, international organization headquartered in Vienna, Austria, was established in Baghdad, Iraq on 10–14 September 1960.Its mandate is to "coordinate and unify the petroleum policies" of its members and to "ensure the stabilization of oil markets in order to secure an efficient, economic and regular supply of petroleum to consumers, a steady income to producers, and a fair return on capital for those investing in the petroleum industry. In 2014 OPEC comprised twelve members: Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates and Venezuela. Why are oil prices falling? Here are four main factors driving oil’s sharp decline: 1. US oil production is booming Exploding US oil production has transformed one of the world’s leading oil consumers into one of its leading producers as well – in fact, North Dakota alone produces a million barrels of oil per day. US production now rivals oil giants Saudi Arabia and Russia, largely thanks to innovative drilling that has unlocked oil and natural gas deposits trapped in shale rock. US production has cushioned oil markets from geopolitical strife in the Middle East and Ukraine, and are pushing down gas prices. Analysts expect gasoline could slide below $3.00 a gallon before the end of the year.

2. Saudi Arabia isn't budging As a leading producer, pumping nearly 10 million barrels of oil a day, Saudi Arabia has outsize influence in the oil markets. And so far, the crude…...

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