Market Insights

August 19, 2016 • Posted in Market Insights

Week of August 15, 2016

  • Oil prices moved up sharply last week after Saudi Arabia’s energy minister announced that OPEC members and other major oil producing nations would meet informally in Algeria next month to “discuss the market situation including any action that may be required to stabilize prices“
  • The market saw an increase in prices in advance of a similar meeting in April in Doha
  • No agreement was reached and prices corrected soon after as Iranian and Saudi output remained high
  • In the meantime, Saudi Arabia revealed that it set a new record production rate in July
  • The US rig count also increased again last week to 381, up by 65 rigs since May
  • Any effort by OPEC to stabilize prices runs the risk of bringing more non-OPEC production into an already-oversupplied market

 

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