Analysis: ‘In industrialized do well with low prices’ – The Universe

Augusto Tandazo

In 1983 the unit of OPEC (Organization of Petroleum Exporting Countries) fails. Since then, they did what the great powers, USA to the head, was very smart from the standpoint of their interests. Do not fight but the OPEC intervenla, and thus desunes

Since then manage the financial surplus, which does not They could spend these oil producing Arab powers, especially Saudi Arabia, Kuwait, Qatar, UAE, including Iran at the time, be received by the industrialized world. They became net exporters of capital. So that when the 2008 crisis broke out … I made them decide: either we lower oil prices not to explode our economies in which you have your investment since 1983 or are contributing to low prices for our economies gradually start to revive …

Now what two, three, four years ago, the industrialized countries had negative growth figures, today is around three points of GDP. It does well based on cheap oil. Here the first statement.

The second is based on the unequal terms of trade, technological problem … in buying raw materials to achieve price and sell stolen chicken manufactures at extremely high prices.

There is a huge disinformation campaign … Ex: Is Falling oil prices because there is a contraction in demand as the global economic crisis and its effects have not completed

Let’s talk about figures (OPEC). The market study of 18 January 2016, the latest report. Global demand grew 2’570.000 barrels per day in 2015, with reference to the start and end of the year. We conclude with 93’950.000 barrels of consumption. It has grown demand, then this is not the cause of low oil prices

Second example. that there is a contraction in US demand by new technologies. This country begins 2015 19’670.000 consuming barrels and barrels 20’100.000 ends rather growing demand

Third. US It produced by fracking million (extracting oil from the ground). Begins producing in 2015: 13’740.000 barrels and ends with 13’750.000, 10,000 more

Another example:. Libyan produced 1,600,000 barrels a day, came the civil war and came to produce zero. If this offer is decreased so that the oil is discharged, what happened? Mostly because Saudi Arabia covering the production to not raise prices …

The global demand is 93’950.000 bpd. We divide into two producers, OPEC and non-OPEC, like Mexico, Russia, Norway, Brazil, Colombia, USA Non-OPEC produced 57 million barrels (in 2015). So theoretically 37 million would be produced by OPEC, which has a production quota fixed 30 million since 2011.

The same report said that OPEC is producing 32’576.000 barrels, with only can say that OPEC is required to produce 30 million barrels, why produce more barrels 2’576.000? (…) We have two million-plus barrels identified seven million. Obviously, those that overproduce are Saudi Arabia, UAE, Qatar, Kuwait, UAE aligned with western countries, the countries of the Gulf Cooperation Council, the Sunni countries, enemies of the Shiites, Iran … Geopolitics, not so many words … it is a political issue. Oil drives the economy and the world has not been able to divorce oil “.

* Expert tanker. Analysis of the issue in an interview Tuesday with Public Radio of Ecuador. (I)