The Fed sends flowers to OPEC
OPEC+ continues to keep oil prices within a 'goldilocks' price range and provide stability in turbulent geopolitical times
The US Federal Reserve published in January an academic paper, Reasons Behind Words: OPEC Narratives and the Oil Market. The paper is the result of rigorous research and analysis by a team of authors who used a model-based approach to analyse all recorded OPEC press releases and mapped them against the fundamentals of oil supply, demand and speculative activity in the oil market. Their main conclusion was that “OPEC communication reduces oil price volatility and prompts market participants to rebalance their positions”. For an organisation that often gets a bad press, this complimentary statement might come as a surprise to many, particularly those who mistakenly take the view that OPEC is a
Also in this section
13 January 2025
With Namibia, Guyana and Brazil playing starring roles and important innovations being developed, business as usual has never looked so good
13 January 2025
Regional cooperation over the development of gas resources has the potential to bring peace and prosperity to the East Mediterranean
13 January 2025
Significant expansions are underway in both liquefaction and regasification capacity as LNG firms up its position as a long-term solution for the world’s energy needs
10 January 2025
New Petroleum Economist OPEC+ oil survey sees group improve compliance to ensure oil market stability going into 2025
