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A review by Oxford Institute for Energy Studies suggests OPEC has less power to maintain high...

A review by Oxford Institute for Energy Studies suggests OPEC has less power to maintain high oil prices than it does to prevent low oil prices. If OPEC really wants to defend its current price level - all indications are that it is happy with oil ~$110/bbl - then it likely will need to accept a large reduction in its market share, the report concludes.
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  • SoldHigh
    , contributor
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    Since GLOBAL demand for oil will continue to increase, if OPEC is currently producing X barrels of oil they can continue to produce X barrels of oil and be fine even if they their percentage of market share declines.

     

    A percentage reduction in market share will decrease OPEC's influence over pricing but supply/demand implies perpetually "high" oil prices. A meaningless report imo.
    29 Jan 2013, 10:40 AM Reply Like
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