As much as the oil price drops benefit us as consumers, it’s causing one hell of a stir. The Organization of the Petroleum Exporting Countries (OPEC) have committed to higher levels of oil production in order to hopefully quell the American output of shale – that is, fine-grained sedimentary rocks that can, and have been rich resources of petroleum found in the U.S – that have forced down the price per barrel in recent months. – CH(Bloomberg) — The United Arab Emirates will stick with a plan to increase oil-production capacity to 3.5 million barrels a day in 2017 even as an oversupply pushed prices to the lowest in more than five years.
“In this time of unstable oil prices, we are showing in Abu Dhabi and across the country that we remain dedicated to reach our long-term production goals,” Energy Minister Suhail Al Mazrouei said in a presentation in Abu Dhabi yesterday. “Our investments remain there.”
Oil fell to the lowest level since March 2009 yesterday after Goldman Sachs Group Inc. and Societe Generale SA cut their price forecasts. Venezuela called on producers in the Organization of Petroleum Exporting Countries to work together to lift prices back toward $100 a barrel. The U.A.E., the fifth- largest OPEC member, produced 2.7 million barrels a day last month and has a current capacity of 3 million barrels a day, according to data compiled by Bloomberg.
Oil slumped almost 50 percent last year, the most since the 2008 financial crisis, amid a supply surplus estimated by Qatar at 2 million barrels a day. OPEC is battling a U.S. shale boom by resisting production cuts, signaling it’s prepared to let prices fall to a level that slows American output, which has surged to a three-decade high.
Brent for February settlement slid $1, or 2.1 percent, to $46.43 a barrel on the London-based ICE Futures Europe exchange at 11:48 a.m. Singapore time. West Texas Intermediate decreased 81 cents to $45.26 a barrel. – BLOOMBERG
