An economic war against American shale oil is what’s going on. They want to see the price so low that it’s no longer profitable for American oil firms, therefore they will close up shop and bring consumer dependence back to the Middle East. That’s why OPEC along with Russia agreed to let prices fall.
MOSCOW (Reuters) – Russia’s most powerful oil official Igor Sechin said in an interview with an Austrian newspaper that oil prices could fall below $60 by mid-way through next year.
Sechin, chief executive of Rosneft, Russia’s largest oil producer, also said U.S. oil production would fall after 2025 and that an oil market council should be created to monitor prices, the same day the OPEC cartel met in Vienna and left its output targets unchanged.
“We expect that a fall in the price to $60 and below is possible, but only during the first half, or rather by the end of the first half (of next year),” Sechin told the Die Presse newspaper.
On Thursday, OPEC decided against production cuts to halt a slide in global oil prices, sending benchmark Brent crude plunging to a fresh four-year low below $73 a barrel. Russia is not a member of OPEC.
Full article: Russia’s Most Powerful Oil Official Says Oil Could Fall Below $60 In The Next Few Months (International Business Times)