Sanford C. Bernstein's Beveridge: OPEC Is Dysfunctional

The video discusses OPEC's fluctuating power in the global oil market, influenced by external factors like US production. It highlights the challenges OPEC faces due to low oil prices and budget deficits, leading to increased production despite the need to cut it. The discussion covers market rebalancing through demand growth and supply cuts, predicting a rise in oil prices to around $60-$70 per barrel. The video also explores OPEC's strategy towards US shale producers, emphasizing the need for balanced production to meet future global demand.

What has primarily weakened OPEC's power in recent years?

• OPEC's internal conflicts

• Decreased global oil demand

• Increased oil production from the US

• Rising oil prices

Why are OPEC members increasing production despite low oil prices?

• To gain more market share

• Due to budgetary pressures and deficits

• To support global economic growth

• To comply with international agreements

What is expected to help rebalance the oil market by the third quarter?

• Increased OPEC production

• Strong global demand and reduced non-OPEC supply

• Government interventions

• New technological advancements

What is the predicted price range for oil by the end of the year?

• $80-$90 per barrel

• $60-$70 per barrel

• $100-$110 per barrel

• $40-$50 per barrel

Why does Saudi Arabia not want to completely drive shale producers out of business?

• To avoid legal repercussions

• To ensure there is enough supply to meet future demand

• To maintain diplomatic relations

• To increase their own production capacity