The big story for the Indian economy over the last 2 years has been the dividends from cheap oil. Brent crude fell from a high of $114/bbl in mid-2014 to a low of $28/bbl in Feb 2016. Over the last 8 months, the price of Brent crude has nearly doubled to $54/bbl. In fact, since the OPEC agreed upon supply quotas in its November 30th meet at Vienna, the price of Brent has moved up from $46/bbl to $54/bbl. Here are 3 things that India needs to watch out for in the coming months… Continue reading
For the first time since 2008, the OPEC at its Vienna meeting on November 30th decided to put supply restrictions. In fact, the OPEC went one step ahead. It also agreed upon the sharing of production cuts among the OPEC member nations. But, the question is whether it will really prop oil prices?
The OPEC meeting on November 30th at Vienna actually turned out to be highly productive for the OPEC. The cartel which accounts for nearly a third of global oil production has decided to cut production of crude oil by nearly 1.2 million barrels per day (bpd). That will effectively take the total OPEC production down to 32.5 million bpd. While this will definitely boost the price of oil in the short run, the question is how significant is this cut in production. Continue reading