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2 Nov 26 2014 @ 9:03am by Matt Smith in Crude Oil

File Under: Pre-OPEC Opining

I did a late-night interview on CNBC Asia last night discussing pre-OPEC craziness ahead of the cartel’s convening tomorrow. Among other things we chew the cud about the meeting of Saudi Arabia, Venezuela, Russia and Mexico (the last two are not in OPEC) – highlighting the current global unease about oil prices. Hark, click on the below mugshot to launch to the clip:

2 Comments on this post:

  1. Claude Desormiers says:

    Matt, Good analysis!

    The speed at which the barrel price is dropping drives uncertainties. Saudi can handle the drop in revenue but debt associated to other OPEC and non-OPEC countries, relying on crude export for the revenue challenges the cartel. This has not been seen since its inception.
    All challenge the cost associated to the production of shale and heavy oil- as stated the drop can be linked to the overproduction due to expectation of higher demand– not being realized.
    There is varied positive and negative impacts on a lower barrel, this is for sure, however for large populated importing countries it may have positive on their economies.

  2. Matt Smith says:

    Hi Claude – thank you for the kind words and insight! You are exactly right re the varied impact of lower prices – that is going to be key over the coming months. While lower oil prices will be a huge benefit to importing countries like the US, the negative impact on smaller producers is much less easy to predict at this time. The negative ramifications on exporting petro-states such as Russia, Venezuela, Nigeria, et al will also have a global impact – a lot of moving parts, both positive and negative.

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