which are less able to enduro low prices, while undercutting new production in countries outside OPEC. (It costs just a few dollars to extract oil in Saudi Arabia, far less than the price of fracking for oll in Texas or drilling ultra-deep wells off Brazil's coast.) "It not the interest of OPEC producers whatever to cut their production, the price is," Saudi Oil Minister All al-Naiml said at the end of December. As for $100-a-barrel oil what seemed like the new normal as recently as a year ago-al-Naimi sald "we may not" see it again. Those were startling words: Energy Agency the International called it a milestone in the history of oil." After all, oPEC is a cartel, and the whole point of a cartel is to control prices for the benefit of producers. But a cartel requires a virtual monopoly, and for OPEC, that's increasingly no longer the case. OPEC production barely changed from 2013 to 2014, but non-PEC including the U.S., countries, added 2 million barrels a day, which happens to be about the size of the global oil glut.
which are less able to enduro low prices, while undercutting new production in countries outside OPEC. (It costs just a few dollars to extract oil in Saudi Arabia, far less than the price of fracking for oll in Texas or drilling ultra-deep wells off Brazil's coast.) "It not the interest of OPEC producers whatever to cut their production, the price is," Saudi Oil Minister All al-Naiml said at the end of December. As for $100-a-barrel oil what seemed like the new normal as recently as a year ago-al-Naimi sald "we may not" see it again. Those were startling words: Energy Agency the International called it a milestone in the history of oil." After all, oPEC is a cartel, and the whole point of a cartel is to control prices for the benefit of producers. But a cartel requires a virtual monopoly, and for OPEC, that's increasingly no longer the case. OPEC production barely changed from 2013 to 2014, but non-PEC including the U.S., countries, added 2 million barrels a day, which happens to be about the size of the global oil glut.
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