Daniel Yergin: The Party Is Over For Oil
"Between 2003 and 2013, China alone accounted for 45 percent of total growth in oil demand"
"As Saudi oil minister Ali Naimi put it, why should they reduce their "low-cost" oil in order to end up subsidizing other countries' "high-cost" oil? That appears to be the Gulf countries' posture going into the OPEC meeting later this week."
Contrary to non-stop bullshit, OPEC has only made meaningful production cuts three times in the past 35 years...
Circled:
The last time oil was at these same levels, 2009, U.S. oil production and storage were far lower than they are today...
Stored (black). Daily production (red). 2009 circled:
"No longer does Saudi Arabia want, as Saudi Aramco chairman Khalid al-Falih said recently, to provide an insurance policy "free of charge" for higher-cost producers. In the face of the market fundamentals, he added, "The only thing to do now is to let the market do its job.""
Oil volatility (red)
