London, 7 january 2016
As the oil price continues to plummet to record lows, the ETF Securities research team comments on OPECs strategy and likely long term outcomes. Nitesh Shah, Director – Commodities Strategist at ETF Securities, says: “It has been just over a year since the Organization of Oil Exporting Countries (OPEC) embarked on a new strategy of seeking market share and abandoned its attempts to try to steady oil prices at levels which would help balance its members’ fiscal budgets. Spearheaded by Saudi Arabia, the strategy was designed to squeeze out high-cost producers who were only able to remain profitable in an elevated oil-price world.
Source: Commodities Now feed