Oman Blasts OPEC | Russell T. Rudy Energy LLC
Russell T. Rudy is exclusively lower 48, onshore focused, so it might come as a surprise that so many of our recent posts deal with international events. However, as the recent oil price slide has shown, energy markets are global; what happens overseas has a direct impact on us here at home. Consequently, when actions in other countries might influence domestic prices etc., we might cover them in a post. The following is an example.
“Rigzone” reports that Oman’s Oil Minister, Mohammed al-Rumhy, accused OPEC of needlessly injecting volatility into the oil market. It should be noted that Oman, while a significant oil producer, is not a member of OPEC, nor does it have the crude and financial reserves of its Persian Gulf neighbors.
Al-Rumhy apparently agrees with many analysts who feel that Saudi Arabia and other Gulf states are trying to preserve long term market share by using lower prices against higher-cost producers such as U. S. shale operators. He contends that this policy is short sighted since other countries, such as his, are being harmed for what will only be a temporary benefit for OPEC. He went on to say that high cost producers will eventually come back into the market and in the meantime, everyone is suffering from price volatility.
It should be noted that as a result of recent oil price declines, Oman’s has a projected 2015 budget deficit of $6.5 billion.
To read the article in its entirety, please go to www.rigzone.com/news/oil_gas/a/136865/Oman .
