While much has been made of the oil price war theories lately, whether it is a direct competition between the United States and Saudi Arabia, or whether the two are in collusion to cripple the Iranian and Russian economies, there is another aspect to the current situation that is worth considering.
In this chart, we see OPEC revenues declining by approximately 8% from 2013 to around the $700 billion mark. With the recent PR campaigns by OPEC oil ministers explaining the cartel’s November 27th decision not to cut output as good capitalism and claiming that they never will cut regardless of the price of crude, the forecast for OPEC revenues for 2015 may beg to differ.
This post was published at Wolf Street on December 26, 2014.
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