The first thing people need to
know about crude is the producers. The major crude oil producers these
days are Russia, Saudi Arabia, and the United States. The top ten
oil-producing countries hold a market share of ~64% of crude oil
production in the world.
The fall in crude oil prices
impacts all the oil producers in these countries. Crude oil prices
directly impact the revenue of US oil producers such as ConocoPhillips
(COP), Anadarko Petroleum (APC), Apache Corporation (APA), and Pioneer
Natural Resources (PXD). These companies are all part of energy ETFs
such as the Energy Select Sector SPDR (XLE). Crude oil prices also
affect the revenue of Saudi Aramco, Saudi Arabia’s largest oil company,
Gazprom in Russia.
Iran, Iraq, Syria, Kuwait, Saudi
Arabia, Bahrain, Qatar, the United Arab Emirates (or UAE), Oman, and
Yemen are members of the Organization of the Petroleum Exporting
Countries (or OPEC). OPEC was formed in 1960. OPEC countries produce 40%
of the world’s crude oil.
Between 1940 and 1970, the following seven major oil companies dominated the oil market:
Read more:
http://finance.yahoo.com/news/why-opec-important-price-crude-214216533.html
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