Oil Prices – A Man-Made Crisis

The International Petroleum Exhibition and Conference meeting this week in Abi Dhabi, UAE, made it clear that not all Middle East oil countries agree with Saudi Arabia. The over 50% cut in oil prices since mid-2014 is straining the budgets and relationships among OPEC countries. Mohammed bin Harna al-Rumhy, Oil and Gas minister of Oman said, "This is (a) man-made crisis in our industry we have created... And I think all we're doing is irresponsible." Emirati officials at the conference believe prices will head back up into next year. Others were more pessimistic about supply and demand balance. Daniel Yergin, vice chairman of HIS noted, "OPEC's not the only balance of the market. The United States is back in the role of swing producer, a role it hasn't exerted in six decades"