Wednesday, December 23, 2015

Impetus Behind OPEC's Oil Oversupply Strategy

Current oil price war misunderstood by many. 

Maintaining market share isn't the root of the battle. 

Why OPEC may never be able to turn off the spigots. 

Over the long term, OPEC's loss of market share is foregone conclusion. 

If there wasn't so much at stake for oil investors, it would be amusing to comment on the analysis foibles of those continuing to suggest the reason OPEC is being pressured to continue production and supply levels so high, is in order to maintain market share.

What most are missing is market share is still a metric being used to represent the outcome of supply increases, but it's no longer the impetus behind maintaining supply at current levels, and even increasing it over the next year or two.

The problem most aren't seeing is this: what will OPEC do once it reaches the alleged market share position it is seeking to maintain, in light of the known recoverable shale oil reserves around the world?

more on what's driving OPEC's oil supply strategy

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