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To: riverdawg
OPEC now has very little pricing power.

OPEC has produced ~40% of the world oil supply for several decades. The only times it significantly produced less, was when they chose to drive prices higher by producing less oil, until the demand market caught back up.

Their "strength" in market share is essentially unchanged. But their ability to work together seems to have diminished, although they have often disagreed over the decades.

13 posted on 12/22/2014 6:52:29 AM PST by thackney (life is fragile, handle with prayer.)
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To: thackney

http://www.businessweek.com/articles/2014-11-25/opec-meeting-saudis-stare-down-oil-producers-in-texas-north-dakota

From the article: “For the first time in a long time, the ability to determine the price of oil no longer clearly resides with OPEC. Instead, it’s increasingly U.S. producers at the controls.”


14 posted on 12/22/2014 7:15:01 AM PST by riverdawg
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To: thackney
OPEC has produced ~40% of the world oil supply for several decades.

Wow. Amazing statistic.

Looked at another way, this means that SA has had several decades to become thoroughly hooked on petrodollars.

16 posted on 12/22/2014 7:25:53 AM PST by Steely Tom (Thank you for self-censoring.)
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