OPEC has had its foot on the throat of the oil market for months, but the chief of the cartel thinks a rebound might now be at hand, according to news reports. “Now the prices are around $45-$55, and I think maybe they reached the bottom and will see some rebound very soon,” OPEC Secretary-General Abdulla al-Badri said on Monday, according to Reuters. If that wasn’t enough to put oil bears on the back foot, at least temporarily, Badri also said it would be possible to see crude climb to $200 a barrel or higher “if you don’t invest in oil and gas,” Bloomberg reported. That is an interesting scenario, since shale production is seen as relatively resilient, with firms able to ramp production up in relatively short order as prices rise. It also stands in contrast to remarks by Prince al-Waleed bin Talal, the billionaire Saudi businessman, who earlier this month predicted oil would never again trade north of $100 a barrel The OPEC chief’s remarks on Monday gave oil a brief pop, though Nymex WTI futures CLH5, +0.24% and ICE Brent futures LCOH5, +0.56% both drifted back into negative territory. Nymex March oil futures were down 28 cents, or 0.6%, at $45.31 a barrel, while March Brent dropped 40 cents, or 0.8%, to $48.39. A nearly 60% plunge in the price of oil since June has sent shock waves through global financial markets. The drop is seen as a positive for oil-importing economies, including the U.S., but the impact on the energy sector has given stock-market bulls pause. It is also contributed to turmoil in emerging markets while amplifying worries over global deflation. Oil’s drop accelerated after OPEC in late November refused to cut production levels in the face of a global supply glut and lackluster demand growth. The move is widely seen as an effort, led by Saudi Arabia, to punish higher-cost producers, particularly North American shale operators, who have sharply increased production levels in recent years. Stock References CLH5 +0.11 +0.24% LCOH5 +0.27 +0.56% More News from MarketWatch Top Stories Trending Recommended Swiss franc slides to lowest since euro cap was ditched Greek borrowing costs continue to surge after Syriza win Northeast blizzard: Forecasters say won’t be as bad as expected Return of the 3% down payment U.S. stocks: Futures fall as Caterpillar, 3M, durable goods line up MarketWatch Partner Center William Watts William Watts is MarketWatchs senior markets writer, based in New York. Follow him on Twitter @wlwatts. Recommended Articles Return of the 3% down payment Michael Moore pours gas on his ‘American Sniper’ firestorm Russia tried to learn how to use high-speed trading to rock market, U.S. says We Want to Hear from You Has oil bottomed? More Headlines Greece, Europe dig in on bailout terms after Syriza victory Economy & Politics Americans hate the federal government now more than ever Personal Finance Apples iPhone closing in on Samsungs smartphone Industries 5 blue-collar jobs that pay $100,000 a year Personal Finance White House drone belongs to government employee flying it for fun: report General MarketWatch Site Index Topics Help Feedback Newsroom Roster Media Archive Premium Products Mobile Company Company Info Code of Conduct Corrections Advertising Media Kit Advertise Locally License our Content Broker Center Your Ad Choices Dow Jones Network WSJ Barrons Online BigCharts Virtual Stock Exchange Financial News Online WSJ Small Business realtor
Posted on: Tue, 27 Jan 2015 10:49:40 +0000
Trending Topics
Recently Viewed Topics
© 2015