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Dr. Frank Umbach
Oil prices were supposed to
stabilize in 2017, but instead they dropped by about 20 percent. The
reason appears to be more technological progress in the shale industry and the
ineffectiveness of OPEC’s production cuts. In response,
the oil cartel may decide to reverse its strategy and punish high-cost competitors by
increasing supply – sending prices even lower.
Professor Enrico Colombatto
world economy in 2017 will be defined by four variables: growth, oil prices,
inflation and interest rates. Political events could also play an important
role, especially a possible rapprochement between the United States and Russia
and general elections in France. The potentially fateful impact of the latter
on the European Union would be amplified by an Italian crisis.
OPEC’s informal gathering in Algiers on September 28 has sent a signal to the international community that the organization can still act coherently. For the first time since 2008, OPEC announced a coordinated production cut. Market forces are at work to limit the impact of this intervention, however, even if it is successfully implemented. .
Dr. Carole Nakhle
Russia and the Saudi-led Gulf states have been at loggerheads over Syria, Iran and oil markets. Yet in the power vacuum left by U.S. disengagement from the Middle East, they have more in common than meets the eye.
In December 2015, the European Union and Kazakhstan signed a new “enhanced partnership and cooperation agreement,” which, among other things, calls for greater collaboration on energy issues. Closer ties – whether in the form of natural gas supplies or green technologies – could benefit both sides. However, the success of the initiative depends on how they approach...
Argentine President Mauricio Macri must cope with an energy sector in dire straits. Policy over the past decade has been inconsistent and often counterproductive. Subsidies weigh heavily on public finances. However, reforming the hydrocarbon extraction and refining industries should prove far easier politically than solving the country’s challenges in electricity p...
Dr. Noel Maurer