Saudi breakeven oil price to hit $321, if spending pattern continues: analyst

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Saudi breakeven oil price to hit $321, if spending pattern continues: analyst(0)

Forget Arab Spring. If Saudi Arabia’s spending patterns and economic policies don’t change, it could be staring at a breakeven oil price of an astonishing $320 a barrel by 2030, says Jadwa.

With $562-billion in net foreign asset, the second largest oil reserves in the world after Venezuela (according to the latest Opec bulletin), and the second largest oil output in the world after Russia - Saudi Arabia’s future looks rosy and solid. READ MORE HERE

High-Spending Gulf In Dilemma As Opec Loses Relevance(0)

With Opec seemingly irrelevant, the GCC is trying to find a balance between responsible crude suppliers and their own domestic needs. But, as Deutsche Bank warns, their own high breakeven prices are making them even more vulnerable to oil price shocks than before. READ MORE HERE

Donald Trump’s Hysterical Comments About Opec, Saudi Arabia and Kuwait Are Way Off The Mark(1)

Donald Trump’s recent hysterical comments on the Organization of the Petroleum Exporting Countries (OPEC), Saudi Arabia and Kuwait are set to put more pressure on President Obama. Expect more pressures on Mideast states as the race for the White House heats up. Read More Here

Peak Oil: Are We In The Midst Of The Mother Of All Commodity Paradigm Shifts?(1)

Worried about ‘peak oil’? How about ‘peak everything’? A GMO analyst crunches the numbers to show why the structural shifts in the world’s consumption patterns will alter the way we view and invest in commodities.

The world is using up its natural resources at an alarming rate, and this has caused a permanent shift in their value and we all need to adjust our behaviour to this new environment. It would help if we did it quickly, says Jeremy Grantham, co-founder of GMO, a global investment firm managing $107-billion in client assets.
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The world may have 49 years of oil left: HSBC(1)

HSBC’s energy outlook for 2050 forecasts that we may have as little as 49 years of oil left and we will have to radically alter our energy consuming ways to avoid a massive energy crunch. Read More

Wikileak Cable That Quotes Ex-Aramco Executive Saying Saudis Overstate Oil Reserves(0)

Here is the leaked Wikileak cable that shows a former Aramco executive saying Saudi Arabia has over-estimated its oil reserves.

Qatar’s $225 Billion Bonanza Over Next Five Years(2)

Qatar’s investment over the next five years will be a staggering $225 billion, but the country is still worried about low energy prices during the period.

As a roadmap for its social and economic aspirations, you can’t really fault Qatar’s National Development Strategy 2011-2016 report. It is inspirational, comprehensive and packed with good intentions, as all such reports should.

For an economy that is growing at a rate that would put China to shame, it’s national development strategy (NDS) is also lacking in a fair bit of pride and glory - if anything, there are parts of the report that are a bit hesitant and self-doubting. The missing vainglory is a contrast from some of the other national development strategies that one has seen over the years - and that is not a bad thing. It’s almost endearing. Read More

Recycling Petrodollars To Curb Inflation In Emerging Markets(1)

While oil inflation fears in emerging markets are warranted, these risks are being mitigated as Gulf oil-exporting states buy emerging market products and services as part of their fiscal spending spree.

What Every Risk Manager Should Ponder(0)

David Rosenberg is an outstanding economist and strategist at Glushin & Sheff in Toronto. He notes that while there are many known unknowns, there are a few things worth pondering about strategists and risk managers like him
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Eight Shocks For the Global Economy(1)

The Japan earthquake, Middle East unrest and the euro crisis: You ain’t seen nothing yet. Here are eight more global shocks already under way or on the horizon. And 10 questions risk managers should ponder. Read More

Also Read:
Black Swan Fatigue

Eight Points Risk Managers Must Ponder