From New Europe:
Content with current oil price levels, the Organization of Petroleum Exporting Countries (OPEC) agreed on 4 December to keep the cartel’s crude production ceiling unchanged at least until June even as Iran and Iraq plan to increase exports in coming months and US fracking has led to the US producing more oil that it imports.The London based Centre for Global Energy Studies was founded by Zaki Yamani and is financed in large part by the Kingdom of Saudi Arabia.
Excess supply, including US shale oil and a potential resurgence in exports from Iran, Iraq and possibly Libya, may push prices lower in 2014. “Next year, Iraqi oil will increase by 300,000 barrels a day, we think at least, there will be 250,000 more from Venezuela, there will be possibly 1 million barrels from Iran, when Iran comes back, and Libyan oil should return so we have a glut on the horizon which should lead to lower prices,” Leo Drollas, Director and Chief Economist for the Centre of Global Energy Studies (CGES) in London, told New Europe on the sidelines of an oil, gas and electricity conference by IENE in Athens on 3 December.
“Then the question is whether the Saudis will reduce their production along with the Kuwaitis to keep the price from possibly crushing,” Dollas said, adding that the CGES thinks Riyadh will cut oil output in that case to prevent the price from reaching low levels....MORE