The Oil Price is Biting

[Oil 2016-05.PNG]

This change has taken longer than most analysts forecast, but it is nonetheless a substantial decline in production and is of global significance. Outside of OPEC, production has also declined in the past 3 months having increased for the prior 33 months consecutively.  For example, we have witnessed production declines in Brazil, Mexico, Colombia, China, Azerbaijan and elsewhere (Citi research, 4th May). In short, if not for the actions of Saudi Arabia and its cohorts, we would already be staring at a market spiralling towards deficit.

So what is Saudi Arabia and OPEC playing at?  We’ve put our thoughts together in this short video, which you can watch on the following link: