Oil prices fell to their lowest in nearly seven years on Monday after OPEC's meeting ended in disagreement over production cuts and without a reference to its output ceiling, while a stronger dollar made it more expensive to hold crude positions.
Crude oil prices roared back after a brief slip below $40.00 per barrel when Mario Draghi failed to wow the market with his stimulus magic and speculation that OPEC may create a roadmap for a production cut next year. Yet, as the real meeting gets underway, tensions are boiling over as the Saudis try to make a case that a production cut might not matter anyway.
Oil is unlikely to return to $80 a barrel before the end of the decade, despite unprecedented declines in investment, as yearly demand growth struggles to top 1 million barrels per day, the International Energy Agency said on Tuesday.
The price war in crude oil is over if you want it to be! At least that is the talk in the energy complex where Saudi Arabia declared a price war against the shale producers at the November OPEC meeting.