“Consumers should get used to current oil prices,” reports Dan Amoss this morning. “And then some.”
OPEC now requires at least $60 per barrel in order to invest in future oil production capacity. “A price of $60-65 is appropriate for consumers and producers,” OPEC’s top research official, Hasan Qabazard, wrote in his monthly newsletter, “because it boosts means of investment in the oil industry in light of growing demand for oil in the coming years.”
“That’s OPEC’s way of telling us that it’s not going to invest in the oil industry just so oil consumers can have cheap gasoline,” says Dan. “Rather, it will cover its own costs as volume slowly diminishes.”
OPEC now requires at least $60 per barrel in order to invest in future oil production capacity. “A price of $60-65 is appropriate for consumers and producers,” OPEC’s top research official, Hasan Qabazard, wrote in his monthly newsletter, “because it boosts means of investment in the oil industry in light of growing demand for oil in the coming years.”
“That’s OPEC’s way of telling us that it’s not going to invest in the oil industry just so oil consumers can have cheap gasoline,” says Dan. “Rather, it will cover its own costs as volume slowly diminishes.”
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