Second half economic gains to lift oil prices

Journal Article · Mon Jul 29 04:00:00 EDT 1991 · Oil and Gas Journal; (United States)

OSTI ID:5676405

Beck, R J

This paper reports on an economic recession that reduced demand through midyear in the important North American products market. Iraq and Kuwait are still unable to export crude oil, however, and other members of the Organization of Petroleum Exporting Countries have avoided producing more oil than the market needs. As a result, crude prices have stabilized. A second half economic recovery would raise demand and prices if production capacity doesn't rise. Timing of the resumption of significant Iraqi and Kuwaiti exports remains the crucial variable. Crude oil and natural gas prices are still too low to stimulate U.S. exploration and production activity. Worldwide activity is down slightly from levels of a year ago, but there are signs of improvement. In the U.S. and elsewhere, demand for crude oil and petroleum products is expected to rebound during the second half. Crude oil production capacity of members of the Organization of Petroleum Exporting Countries has been reduced to 23-24 million b/d. Fourth quarter demand for OPEC oil is expected to climb to the top of that range, which should lift prices.

• OSTI ID: 5676405
• Journal Information: Oil and Gas Journal; (United States), Journal Name: Oil and Gas Journal; (United States) Vol. 89:30; ISSN OIGJA; ISSN 0030-1388
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
020700* -- Petroleum-- Economics
Industrial
& Business Aspects
03 NATURAL GAS
030600 -- Natural Gas-- Economic
Industrial
& Business Aspects
ASIA
CAPACITY
DEVELOPED COUNTRIES
DEVELOPING COUNTRIES
ECONOMICS
ENERGY SOURCES
EXPLORATION
EXPORTS
FLUIDS
FORECASTING
FOSSIL FUELS
FUEL GAS
FUELS
GAS FUELS
GASES
GLOBAL ASPECTS
IRAQ
KUWAIT
MARKETING
MIDDLE EAST
NATURAL GAS
NORTH AMERICA
PETROLEUM
PETROLEUM PRODUCTS
PRICES
SUPPLY AND DEMAND
TRADE
USA
WELLHEAD PRICES