The future for oil prices - VIDEO

Burgess COMMENTARY

Peter Burgess

The future for oil prices - VIDEO

Oil prices have declined by more than 30% since June, but, at its meeting in November, OPEC agreed not to cut production. Here, Peter Kiernan, lead energy analyst at The Economist Intelligence Unit, explains the background to the recent price decline, the motivation behind OPEC's reluctance to act, and our outlook for oil prices.

Questions:

1. Why have oil prices fallen so rapidly, and what role is US oil shale playing in this?

2. At what price does shale oil stop being economic?

3. How are oil companies responding to the decline in oil prices?

4. What was behind OPEC's reluctance to act, and do you think it will have to take action eventually?

5. What is the EIU's outlook for oil prices in the medium term?

Source: Risk Briefing