Tuesday, October 20, 2020

Is OPEC In Crisis?

OPEC logo is pictured ahead of an informal meeting between members of the Organization of the Petroleum Exporting Countries (OPEC) in Algiers, Algeria September 28, 2016. REUTERS/Ramzi Boudina/File Photo 


The OPEC+ member countries are on the brink of a financial crisis if the latest assessments of the International Monetary Fund (IMF) are accurate. 

The IMF has presented a very bleak outlook for an economic recovery in the Middle East and Central Asia, predicting a 4.1% contraction for the region. 

The main driving factor behind this bearish outlook is the IMF’s forecast that oil prices will remain in the $40 to $50 range in 2021. An extension of the current low oil price environment for another year would badly hurt oil and gas exporting countries, which includes all of the OPEC+ members. 

Read more .... 

WNU Editor: OPEC got a break today .... Oil rises on U.S. stimulus hopes, but Covid-19 cases keep gains in check (CNBC/Reuters). But the long term prospects do not look good. With demand being crippled because of the Covid-19 pandemic, global economy contracting, and countries returning to oil markets (i.e. Libya), no one expects oil prices to rise anytime soon. For OPEC nations that means smaller revenues, contracting economies, and the social and political problems that accompany such drops in revenues.

2 comments:

Anonymous said...

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Anonymous said...

Maybe next time they won't shut down economies around the world for more than 2, 3 or 4 weeks like complete shysters or doofuses.

In my region (multi-county) we hit double digit number of deaths for the 1st time. It seems that half-a-dozen senior citizens in their 80's died of covid in 2 separate nursing homes.

We couldn't give people in nursing homes hydroxychloroquine as prophylactic.

How come we are willing to do Pre-exposure prophylaxis (PrEP), Truvada and Descovy, for the gay community, but not hydroxychloroquine for the senior citizen community?

Can hydroxychloroquine be toxic if you get too much? Sure. Is Truvada and Descovy be toxic if you get too much?

They use hydroxychloroquine all over Africa and the African population is growing. Obviously most of them know how to take the proper dose. Americans cannot? Maybe if we cannot Africans should rule the world. At least most Africans can't be white guilt tripped, but liberals would try.

People died in two nursing homes. The upshot is they closed a nursing home and transferred the people. Some nurses and CNA got pink slips. Some healthcare company has less revenue. Companies and individuals generally do not like less revenue. So sooner or later they will change something for the better. They might screw up the courage to fight against the liberal religious dogma that hydroxychloroquine is bad.

But it is not like remdesivir was proven effective there last 9 months. Dang, poor Fauci. That octogenarian won't be able to cash-in on at our expense.