OPEC’s Concern Is the Global Economy, Not Shale-Shock
At a conference in Muscat, Oman, October 21, Abdalla El-Badri, OPEC’s secretary general spoke. Bloomberg quotes him saying that, “The economy remains the major worry, particularly in the short and medium term.” El-Badri is cautious of the international market, citing labor challenges in Europe, slowed growth for China and India, and the potential of the U.S. scaling back quantitative easing programs, as ways global factors can influence the oil conglomerate.
The Energy Information Administration (or, EIA) report for the week ending October 11, U.S. oil inventories increased by 4 million barrels compared to the previous week. The report also said that with “374.5 million barrels, U.S. crude oil inventories are above the upper range for this time of year.” According to MarketWatch, oil inventories have now risen for four straight weeks. Crude, brent crude, and natural gas all slipped today. Crude oil fell below $100 per barrel today for the first time since July.
The fall in crude oil prices and El-Badri’s remarks come almost two weeks after OPEC economists trimmed their fourth-quarter forecasts. The revised number dropped the amount of barrels per day (or bpd) by 230,000. Along with lessening fourth-quarter expectations, OPEC lowered its estimates for 2014 as well, down to 29.56 million bpd.