11.11.2015 - IEA history lesson makes $100 oil more likely
Supply security fears could feed through to higher crude prices sooner rather than later. The Paris-based International Energy Agency says the world’s reliance on low-cost Middle East oil could return to 1970s levels. By cutting capex, oil majors are bolstering that dependence. The Paris-based think tank says that the Organization of the Petroleum Exporting Countries, the cartel dominated by Middle Eastern producers, will ultimately win the oil price war. Quite so. OPEC’s strategy to keep pumping has led to a 43 percent decline in the value of Brent crude since last November. It can turn the taps off again. The IEA doesn’t see oil prices recovering above $80 per barrel until after 2020. But it reckons shrinking investment across the industry – in shale and elsewhere – could leave the world just as dependent on OPEC as it was in the 1970s...............................................Full Article: Source
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