SAUDI ARABIA & OPEC
Saudi Arabia, the world's largest oil producing nation and the key "swing" oil exporter, has always dominated OPEC decisions.
The GHAWAR oil field located in Saudi Arabia is the world's largest oil field. The field is entirely owned and operated by Saudi Aramco, the nationalized Saudi oil company. Discovered in 1948, it measures 280 km by 30 km and has more than 70 billion barrels of remaining reserves of Arabian Light crude (33 API). Ghawar’s producing capability of more than five million barrels per day is unmatched by any single entity in the world.
Points to note :
- Oil prices are near their all time highs.
- OPEC members are concerned about a falling US Dollar.
- Middle Eastern countries are considering removing their US Dollar peg.
- Pricing of Oil in a basket of currencies in the future as against USD denominated contracts currently.
- The USA is the No. 1 Oil consumer.
- Impact of a US slowdown/recession on Oil prices.
- Impact of a US slowdown/recession on Asian economies (that export to the USA), that are currently large oil consumers.
- Impact of declining production at large oil fields such as Ghawar and Cantarell, as well as oil fields in the North Sea.