28 Nov 2014
OPEC; producers of the world unite – ING
FXStreet (Barcelona) - The ING Research Team notes that OPEC frequently used the world ‘unite’ among global producers yesterday during its announcement of no production cuts, implying that non-OPEC members should be the ones scaling back production.
Key Quotes
“OPEC announced on Thursday that there would be no production cuts to its 30MMbbl/d quota. The cartel frequently used the word ‘unity’ among global producers, implying that non-OPEC members should be the ones scaling back production. That does not sound like unity to us.”
“But if there is disparity in production cuts, one thing will be shared by OPEC and non-OPEC nations alike: pain from lower prices.”
“OPEC’s decision today is not that there will be no production cuts, it is that there will be production cuts by others. This would provide the recovery in oil prices, but spell gloom for many others.”
Key Quotes
“OPEC announced on Thursday that there would be no production cuts to its 30MMbbl/d quota. The cartel frequently used the word ‘unity’ among global producers, implying that non-OPEC members should be the ones scaling back production. That does not sound like unity to us.”
“But if there is disparity in production cuts, one thing will be shared by OPEC and non-OPEC nations alike: pain from lower prices.”
“OPEC’s decision today is not that there will be no production cuts, it is that there will be production cuts by others. This would provide the recovery in oil prices, but spell gloom for many others.”