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The Global Perspective.
- Article from:
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APS Review Oil Market Trends
- Article date:
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September 15, 2008
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The world's economy is slowing down, not only because of high commodity prices including paper oil, but also due to a financial melt-down in the US housing sector with implications spreading across the globe and other factors. But paper WTI, which by July 11 had risen seven-fold since 2002, is dropping as a result of falling world oil demand.
During OPEC's ministerial conference in Vienna on Sept. 9-10 and under pressure from the group's price hawks to lower production substantially, Saudi Arabia reluctantly agreed to a small 520,000 b/d cut in output. But the world's top exporter of crude oil will do what it takes to keep the market balanced, having stabilised paper WTI ...