The recent debate over falling oil prices has become an over simplified economic question of supply and demand, ignoring other interrelated economic theories. Despite the global recession and, oil demand has remained at 90-91 million barrels per day (mbd) over the past 5 years. However, due to the recession, Western nations have slowly reduced their demand. Meanwhile low growth
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In response to what has been discussed on the network forum regarding the reasons for the fall in oil price, it is worth mentioning some important determinants of the price of this commodity. Firstly, the majority of oil trading takes place through the use of Futures or Forward contracts. The price of these contracts are set or influenced by a number of factors such as interes
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Dip in prices throws up as many imponderables for shale oil producers as well. When oil prices collapsed in 1986 from $28 (Dh103) a barrel (for the Opec reference crude Arab Light) to less than $10 a barrel in just a few months, we were told the battle for market share with non-Opec producers was joined. I was just starting my new job at the Opec Secretariat and one of the apo
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As oil prices have tumbled, one question has reverberated around the market: what is Saudi Arabia up to? Little restraint has been shown by some energy market watchers in their commentary on the recent sell-off and the role played by Opec’s biggest producer. The 25 per cent fall in the price of Brent crude since mid-June, to almost four-year lows, they say, is the result of a
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Vision Statement “Developing a viable and thriving national private sector, that is regionally competitive and globally integrated, led by the business community, which contributes to economic diversification, sustainable development and job creation.” TABLE OF CONTENTS FOREWORD ....................................................................................................
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