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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsOPEC Gives Up on Its Oil Freeze Plan
There are currently no proposals on the table for OPEC to revive limits on crude output at its June meeting after the failure of talks to freeze production last month, according to six delegates from the group.
A meeting of representatives from the Organization of Petroleum Exporting Countries in Vienna Wednesday discussed how the fundamentals of oil supply and demand are improving, according to two delegates, who asked not to be named because the talks were private. The proposal to freeze output has been overtaken by changes in the market and may no longer be necessary, said two delegates from nations that had supported the idea last month.
Oil has rebounded after slumping to the lowest since 2003 earlier this year on signs the global glut is easing as U.S. output declines. Prices gained even though OPEC itself has been without a production target since December, and talks with other producers to freeze output fell apart last month after Saudi Arabia refused to join without Iran. While the recovery has relieved some pressure on producers, signs of discord persisted within the oil-exporters group.
Improving Market
Brent crude, the international benchmark, has continued to advance since the failure of the Doha talks, rising to $48.50 a barrel last week, the highest level since November. Global supply and demand will move close to balance in the second half of the year as lower prices take their toll on production outside OPEC, the International Energy Agency said last month. U.S. crude output fell to 8.83 million barrels a day last week, the eighth consecutive weekly decline, according to Energy Information Administration data.
There were indications the freeze proposal could be revived at OPEC’s bi-annual meeting in June. While Venezuela -- one of the architects of the freeze plan -- requested that non-members that participated in the Doha talks should be invited to the June meeting, OPEC nations have yet to respond to the request, said two delegates.
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http://www.bloomberg.com/news/articles/2016-05-04/opec-said-to-head-for-june-talks-without-plan-for-supply-limits-inswnyfd
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Kelvin Mace
(17,469 posts)And I know that remark will piss some people off, but low prices are certainly good in the short term, but very bad in the long term. What we need are new taxes on gasoline/oil/coal/NG to pay for green infrastructure and encourage people to move to cleaner transport and energy generation.
Purveyor
(29,876 posts)Kelvin Mace
(17,469 posts)Purveyor
(29,876 posts)
Wounded Bear
(58,670 posts)I've been through several of these cycles. Oil prices spike, green energy gets a boost. Oil prices drop, green investment tanks. Finally, that isn't happening this cycle. With oil prices at levels not seen in 10-15 years, we're still seeing green energy on the upsurge, people are finally learning to ignore the manipulations the oil cartels have been doing since Carter was President and climatology is finally being accepted for what it is, one of the most important scientific fields of the next century.
Yes, we will need new revenue sources to support infrastructure, which will probably include some kind of mileage tax instead of gas taxes to maintain transportation infrastructure. What we need is to get rid of the Republican mindset of "oh my god, no new taxes!" and promote some reasonable alternatives to our government revenue sources, and government support of industries based on the public good and not on somebody's profit margin.
Kelvin Mace
(17,469 posts)we can take the revenue and fund infrastructure repair, and tax credits/rebates for solar, wind, EVs, etc. Greater spending on green energy sources increases their replacement of older and dirtier supplies, while creating jobs in manufacturing, service and installation.
And you are correct, we ultimately will need to switch to a mileage-based road tax, but for now we need more people driving high efficiency PHEVs and BEVs, so tax rebates would be helpful (within limits). I would like to see rebates for cars under $45,000, and tax credits up to $60,000. People who can afford cars priced higher don't need rebates or credits. Both would phase out over time period, say ten years, while the caps would also fall (this would encourage cheaper BEVs).
Kelvin Mace
(17,469 posts)WSJ one hour ago:
Crude Rises on Supply Threats Worldwide
Reuters 20 minutes ago:
Oil turns lower after bigger-than-forecast U.S. crude build
