Investing in Energy: A Primer on the Economics of the Energy Industry

Concluding Thoughts

OPEC has evolved and become increasingly media savvy. More importantly, OPEC appears to be keenly aware of the effects of its policy on the global market. As crude prices continue their ascent, there is growing contentment with prevailing market conditions among the OPEC membership. No surprise. But if the crude markets continue to climb on the heels of inflation-increasing government policies, we may yet see OPEC move in a different direction. To date, crude oil inventories have been well above the five-year averages. Given ample crude supplies, OPEC is not likely to make any production changes in the near term despite triple digit crude oil prices. For the moment, Saudi Arabia has become the swing producer as it steps in ...