Fox Business
Expand
Browse All Video
Watch Live

You're watching...

Tide Turning Inside OPEC?

Details

  • Description

    Summit Energy Services commodity analyst Matt Smith on the future of OPEC.

  • Duration 3:19
  • Date

Clips

Also in this playlist...

Latest Video

Auto-advance: ON

Auto-advance
View All

Transcript

This transcript is automatically generated

Thanks so much.

So tough decisions await OPEC has it needs for the first time in nearly six months but with oil prices hovering near 85 bucks a barrel.

And the future leadership of the group -- question the credibility of OPEC is for shore on the line that's meant is a commodity analyst at -- energy services.

Thanks so much for joining us I mean let's -- into the issue of leadership first.

Abdullah Al -- -- has been the Secretary General or about six years.

Now he's stepping down.

How important is who replaces him.

But it's very important really a body is taking us through the very torrid time in the crude market.

And then now when at a time when -- having this meeting when you would expect that there would be least different debates going on regarding supply regarding price.

The -- the -- cartel is happy with supply and price.

And yet this -- huge concern with the leadership whether it's gonna go to an Iranian Iraqi or sounding and so this is this is -- huge concern especially.

At a period glimmer answering.

As -- gonna -- cuts probably next year by OPEC.

Yeah I mean there's a lot of focus on this at the same time anytime I've been at a meeting most of the meeting happens a week from the meeting you know they all meet late into the night.

At each -- hotels trying to hash out what's gonna be sad.

Does Saudi Arabia near mine minister -- -- still control the cartel war.

You know Iran and Venezuela for a long time have been trying to put together -- group to sort of challenge nine these power.

Are they becoming successful at that.

I don't think so I -- about -- me.

Is such a good represents state of OPEC he came out back in April when prices were prices were running up.

And and showed his frustration said look we need to get prices down Saudi Arabia is the linchpin about a -- they have that -- spec capacity.

And they already have the production levels that -- they can put onto the market.

And so that's what he did back in April and that's what kept prices -- down he did a very successful -- that as Saudi Arabia did.

And that they just really highlighted that their rating control they might you have seen.

At this seems on the other side is got really aggressive I mean -- we saw at the last meeting Rafael Ramirez.

The representative from Venezuela getting up and talking about the fact that they have more proven reserves now.

Then Saudi Arabia saying that there are bigger oil giant they brought studies from BP along.

To -- -- -- to back that -- and if you look at OPEC's website now being recognized Venezuela as being on top even though they're obvious you know their production really relax but.

-- -- isn't that tide turning inside OPEC.

Now that's exactly the point -- make this stuff that was seeing even though they have sort of 300 billion.

Reserves as it would seem falling production from -- Venezuela needs.

Like.

Three billion dollars a year just to keep power plant with production levels weather now now they need that investment and yet and same time.

They take -- ExxonMobil that kicked -- Chevron that kicked out.

ConocoPhillips.

And sold at these different.

Issues that did you should really wouldn't be making it more than influence -- ready just handicapping it rarely.

Yet Matt Smith great information thanks for coming on -- still the -- that's the take away I got thank you.

Load More