?“We find that there is little correlation with the course of global equity markets and the price of oil,” says Adam Sieminski, chief energy economist for Deutsche Bank. “Instead, we expect the oil price will take its lead from the pace of OPEC production cuts.”
View the video of Adam Sieminski's presentation.
Since 1993, OPEC has announced 12 quota reductions to defend oil prices, he says. About 80% of the time, OPEC has succeeded in defending the price of oil.
?“We find that, on average, quota reductions are effective in pushing oil prices higher,” says Sieminski.
These results would tend to imply that the current OPEC quota-reduction cycle will continue until third-quarter 2009, he says. Moreover, oil prices are expected to stabilize about three months after the last reduction in quotas has been announced. If so, this would imply oil prices will not hit rock bottom until the very end of 2009.
Recommended Reading
E&P Consolidation Ripples Through Energy Finance Providers
2024-11-27 - Panel: The pool of financial companies catering to oil and gas companies has shrunk along with the number of E&Ps.
Utica Oil E&P Infinity Natural Resources’ IPO Gains 7 More Bankers
2024-11-27 - Infinity Natural Resources’ IPO is expected to provide a first-look at the public market’s valuation of the Utica oil play.
New Fortress Makes Headway on $2.7B Debt Refinancing
2024-11-26 - New Fortress Energy Inc. anticipates raising approximately $325 million in gross proceeds through the refinancing.
Equinor Exercises Option for Three Havila Vessels
2024-11-26 - Equinor ASA uses the vessels to support its North Atlantic, North Sea platforms.
California Resources Names Crespy as Executive VP, CFO
2024-11-26 - Clio C. Crespy has worked on some of California Resources’ “most significant” projects, including the Carbon TerraVault joint venture and the direct air capture hub at Elk Hills, said CEO Francisco Leon.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.