Comments from Barclays & Commerzbank via Bloomberg today … “Why OPEC is talking oil down, not up, after 48% selloff ”
- Representatives of Saudi Arabia, the United Arab Emirates and Kuwait stressed a dozen times in the past six weeks that the group won’t curb output to halt the biggest drop in crude since 2008
- These countries actually want — and are achieving — further price declines as part of an attempt to hasten cutbacks by U.S. shale drillers
- While squeezing revenues for OPEC members … the aim is to preserve market share for years to come
And more, from Jamie Webster, an analyst at consultants IHS Inc. in Washington:
- “The faster you bring the price down, the quicker you will have a response from U.S. production — that is the expectation and the hope”
- “I cannot recall a time when several members were actively pushing the price down in both word and deed”
