Young Research & Publishing Inc.

Investment Research Since 1978

Disclosure

  • About Us
    • Contributors
    • Archives
    • Dick Young’s Safe America
    • The Final Richard C. Young’s Intelligence Report
    • You’ve Read The Last Issue of Intelligence Report, Now What?
    • Dick Young’s Research Key: Anecdotal Evidence Gathering
    • Crisis at Vanguard
  • Investment Analysis
    • Bonds
    • Currencies and Gold
    • Dividend Investing
    • ETFs & Funds
    • Investment Strategy
    • Retirement Investing
    • Stocks
    • The Efficient Frontier
  • Investment Counsel
  • Dynamic Maximizers®
  • Retirement Compounders®
  • Free Email Signup

Can OPEC Get it Right on Oil Production?

April 12, 2018 By Young Research

unset over oil field in the Red sand “Arabian desert” near Dubai, United Arab Emirates. By Fedor Selivanov @ Shutterstock.com

OPEC is targeting $80/barrel for oil, but will it be able to get there if it’s not estimating the proper amount of non-cartel production? In The Wall Street Journal, Sarah McFarlane and Stephanie Yang report:

While cuts from the Organization of the Petroleum Exporting Countries have helped eliminate oversupply of crude oil, the cartel said in its monthly market report that non-OPEC producers such as the U.S. are contributing to rising global supply.

”We still think that the cartel is underestimating non-OPEC supply growth,” said Capital Economics analysts, noting that higher prices will incentivize U.S. producers to ramp up activity and OPEC members to exceed quotas.

Another damping factor was the EIA’s upward revision to its U.S. 2019 production forecast to 11.44 million barrels a day, from its previous figure of 11.27 million barrels. U.S. oil production averaged 9.3 million barrels a day in 2017.

“The merciless growth will continue as long as oil prices remain steady, supported by political tensions in the Middle East,” said Tamas Varga, analyst at brokerage PVM.

Geopolitical risk has lifted prices to multiyear highs this week, as investors focused on news reports of potential action by Western countries in Syria, along with reports that Saudi Arabia intercepted a missile over Riyadh on Wednesday, causing concern of instability in the region. Around two thirds of the world’s oil reserves are in the Middle East.

Read more here.

Share this:

  • Email
  • Twitter
  • Facebook

You Might Also Like:

  • Shale Oil Production Explosion
  • Shale Oil Production Booming
  • U.S. Oil Revolution Looms over OPEC
  • Author
  • Recent Posts
Young Research
Latest posts by Young Research (see all)
  • Happy Independence Day - July 4, 2022
  • Happy Memorial Day! - May 30, 2022
  • Happy Easter! - April 15, 2022

Search Young Research

Most Popular

  • Here’s Why You Need a 15-Year Retirement Investment Plan
  • Why Work When Taxes Take It All?
  • Are Google, Amazon, and Microsoft About to Crash This Specialized Real Estate Market?
  • What Happens to Your Passwords When You Die?
  • Is the Great Job Boom Over?
  • Regulators' Bungled Attempts to Cut Emissions Drove Oil Prices Higher
  • RURAL RENAISSANCE: America Finds the Country Again
  • Vanguard Wellesley (VWINX) vs. Wellington (VWELX): Which Fund is Best?
  • The Power of a Compound Interest Table
  • Your Survival Guy: Clearing the Decks, Buying a Boat, Seeing the World and More

Don’t Miss

Default Risk Among the Many Concerns with Annuities

Risk and Reward: An Efficient Frontier

How to be a Billionaire: Proven Strategies from the Titans of Wealth

Could this Be the Vanguard GNMA Winning Edge?

Cryptocosm and Life After Google

Warning: Avoid Mutual Fund Year End Distributions

Is Gold a Good Long-term Investment?

How to Invest in Gold

Vanguard Wellington (VWELX): The Original Balanced Fund

What is the Best Gold ETF for Investing and Trading?

Procter & Gamble (PG) Stock: The Only True Dividend King

The Dividend King of the North

You’ll Love This if You’re Dreaming of an Active Retirement Life

RSS The Latest at Richardcyoung.com

  • Happy Independence Day
  • For Investors Who Want to Stop Worrying About a Market Crash
  • Breaking News: House Election Update
  • WATCH: New York Governor Melts Down When Asked for Facts
  • Florida Is a Refresher Course in American Greatness
  • Should You Believe Ms. Hutchinson?
  • Biden’s Economy Even Weaker than Thought
  • A Cashless Society Is A Debacle for Americans
  • Time to Save, Troubles Dining Out, and Intelligence on Yellowstone
  • Democrats Running AWAY from Biden on the Campaign Trail

About Us

  • About Young Research
  • Archives
  • Contributors

Our Partners

  • Richard C. Young & Co.
  • Richardcyoung.com

Copyright © 2022 | Terms & Conditions

 

Loading Comments...
 

    loading Cancel
    Post was not sent - check your email addresses!
    Email check failed, please try again
    Sorry, your blog cannot share posts by email.