Parts of OPEC Feeling Pain

Posted November 7, 2014 at 5:05am

Bloomberg reports: “Here’s why the U.S. shale upstarts just might win a confrontation with Saudi Arabia as oil sinks: While the Arab nation is as flush with cash as ever, the finances of some fellow OPEC members are deteriorating quickly.”  

“Venezuela, for example, has burned through billions of dollars, leaving its foreign reserves near a decade-low, to stave off default. In Nigeria, officials are struggling to stem a selloff in the currency that has left it at a record low.”  

“Those financial strains have Venezuela calling for action to prevent further declines in oil prices while a Libyan representative said the 12-member Organization of Petroleum Exporting Countries should cut its output target. When executives at American shale companies talk about having more staying power in a price war than some of the Saudis’ partners, these countries, along with places like Ecuador and Iran, are the key weak links in question.”