There are reports that Saudi Arabia may battle with its fellow OPEC members over near term oil production. The Saudis have supported high exports recently, which has helped the price of crude to drop as global economic activity has slowed.
Saudi Arabian Oil Minister Ali al- Naimi comments about production have been cagey, but most analysts expect the fight will be won by the Saudi’s because they have the lion’s share of shipments among OPEC nations. Other members of OPEC have good reason to want to curtail shipments. Their treasury balances will be hurt by the drop in Brent from $120 to $100. These oil price hawks are willing to gamble the high prices will not knock the global economic recovery off of its axis. That argument is weak since the worldwide recovery anticipated for this year is already at great risk.
Douglas A. McIntyre
Essential Tips for Investing (Sponsored)
A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
