OPEC Pricing Power Weakens As Emirates Reduce Production
The ability of OPEC to set global oil prices is eroding in regions including Canada and the United States. Analysts noted that while volatility remains high, this shift is expected to change market dynamics. No immediate price changes are anticipated at this moment. Jochen Stanzel of Commerzbank stated that the withdrawal of the United Arab Emirates has weakened OPEC's pricing power. The fiscal break-even price for Saudi Arabia is 85 US dollars, while the Emirates can maintain break-even at 55 US dollars. The Emirates previously intended to increase production from 3.5 million barrels per day before the Iran war to 4.5 million barrels per day. Stanzel suggested that oil prices could potentially decline as a result.
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Sources · 7 independent
Times Radio UK
“in places like Canada and the United States, which has been eroding. somewhat the ability of OPEC to set the price of oil but this will change things.”
NDR Info
“Der Rückzug der Emirate kostete die OPEC-Preissetzungsmacht, meint Jochen Stanzel von der Konsorsbank. Ergo könnten die Ölpreise etwas nachgeben.”
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