02/02/2015
Strikes oil workers in the United States reflect the worsening crisis on shale production
Oil prices start gradual correction after a difficult months of decline
Said to the "economic",oil specialistsTherise in oilprices by8 per centlast weekendis an indication ofthe start ofthe recovery ofthe market andthe direction of pricestocorrecttheir positionsafter severaldifficultmonthson the marketwhichhas suffered fromsharpdeclinesin a row.
He pointedout that theimprovementspecialistswill remainrelativelythefundamental changein the market bynarrowing the gap betweensupply and demanddid not occurwherethe marketwill continue tosufferfrom theabundance andglutin supplyatthe expense ofslowing demandgrowth.
Theystressed that theimprovementis comingbecause ofeconomic reportsfrom theexpectedgrowthinChina,which is the largestoil consumerin the world andaccompanied by acontractionin productionfrom countries outside the"OPEC",a privateUSshaleoil producerswhoare now sufferingfrom the repercussions oflow prices,which threatenalltheirproduction and investment.
He saidthe "economic," said Dr.PhilipDepechePresident of the European-MediterraneanEnergyInitiative,theimprovedcrudeoil priceswill take some time, butgo back tothe previousseverelevelsrise,which amountedto $115 a barrel.
Depechepointed out that theproducersfor themto cope withlow pricesand adjust thespeed ofthe objects of expenditureand income sourcesandconsumersto accelerate thedevelopmentand productionprograms totake advantage of cheaperproduction costsand largesavingsinenergy bills.
Depecheexplained thatan exclusive interview withthe World Bankin the Middle Eastreportstressed thatoil-consumingcountries havesignificant economicadvantagesandfavorable conditionsfor production andaccelerate growthprograms, and amongthoseconsuming countriesseveral Arab countriessufferedin theprevious yearsof the energyand high costproblems, andthese countries, JordanandTunisiaLebanon and Egypt.
The head ofthe European InitiativeMediterraneanEnergy Agency,the World Bankstressed thatalloil-importingcountries,whichinvestthe declineof$ 115 a barrelinJune2014to less than$ 50currently,pointing out that thebalance oftradein consumer countriescould be improvedby upto 2 per centof GDP.
Depechebelieves thatpositive economicresultsinconsuming countrieswill be definedthrough a number ofimportant economicindicators,notably thedecline ininflationand poverty rates, however,some Arab countrieslinkedeconomicallyin the Gulf regionmay suffersomeeconomic consequencessuch as thedecline in the numberof potentialtouristsfrom the Gulf statesorlowforeign laborremittancesGulfandin the case ofthe continuing decline inoil prices.
IgorJakovlvRussiananalystpredicted that thecoming period would witnesseconomic turmoilin the United Statesafter thefall in priceshas ledto the productiondisruptionsinsomeof shaleoil fieldsand a freeze onsome newinvestment planswith numerousinternational companies.
HeJakovlvfor "economic",said thatthe unresthas also begunonthe level of employment, wherewe findthe trade unionsleadersinthe field of petroleumclaimtostrikesin the United Statesis the firstof its kindsince 1980.
He notedRussiananalystthat thesedifferencescropped upnow, afterpayment offallingUS oilprices of companiestocut spending,pointing out thatRussiais also facingmanyeconomic challengesdue tothe sharp declineinoil prices, whichpushed the countrytoeconomic austeritymeasures to stopthe collapse ofthe national currencyandcontrol inflationin reference to thedecision ofthe Central Bank ofRussiato cutannualbenchmark interest ratefrom 17 to15 per cent,because of the dangersresulting fromthe acceleration ofthe growth ofconsumer pricesand sluggisheconomy.
SawJakovlv,the centraldecisionof the Russiancame as a surprisetotradersin the market andthey hadpreviouslypredictedthat the bankmaintains theannualinterest rates atthe level of17 per cent,as long as theconditions are not favorablefor reductionsas theinflation rates inRussiaare stillhighandthe rubleis weak.
Jakovlv saidthe need toensure the stability ofthe process ofoil supplyin the world,with theneed to expedite thereturn of stabilitytosome countries such asLibya, which has sufferedinthe last few daysof continuouson oilportsattacksIn Iraq, too, wherecontrolledorganizationDaashthesmall stationof crude oilnear the northerncity of Kirkuk.
Russiananalystcalledtothe need to eliminatethe black marketin theoil trade,led by"Daash"and the fight againstspeculationand allthe factors thatcontributed to thevibrationand the weakness ofthe marketin recent months.
For his part, he said,for "economic",Dr. IbrahimEzzatcompetentoiland businessmanwho lives inVienna, said thatthe Gulf countriesleast affected bythe consequences ofthe declineof crude oilprices due tosurplusesand reservesbut thisis not enough,and allproducersadoptnew economicpolicies based ondiversification ofresourcesand rationalizepublic spending.
