Countering peak oil ERM 02

The war of words over Peak Oil has just begun, so has the tussle to control prices. Indian oil producer and refiner Mukesh Ambani said yesterday that refiners must prepare to face an oil price band from $80 to $100. However crude prices at Cushings slipped to $73 as US Energy department announced excess stockpiles at Cushings. The effect of price inversions was evident as the gap between Brent Oil and WTI was almost $8 , the most since 1980.

The coming three months will witness a struggle for the control of oil prices. Wether the OPEC will be able to wrest back control from the miniscule Brent Oil producers, will depend on their alertness, agility and decisiveness of the Saudi Aramco and the Government of Saudi Arabia, the largest producer from the OPEC cartel.

Countering peak oil ERM 02

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