• 4 minutes England Running Out of Water?
  • 7 minutes Trump to Make Allies Pay More to Host US Bases
  • 10 minutes U.S. Shale Output may Start Dropping Next Year
  • 14 minutes Washington Eyes Crackdown On OPEC
  • 1 hour One Last Warning For The U.S. Shale Patch
  • 2 hours Modular Nuclear Reactors
  • 3 hours Dutch Populists Shock the EU with Election Victory
  • 5 hours Climate change's fingerprints are on U.S. Midwest floods
  • 2 days Once Upon A Time... North Korea Abruptly Withdraws Staff From Liaison Office
  • 17 hours Oil Slips Further From 2019 Highs On Trade Worries
  • 40 mins 3 Pipes: EPIC 900K, CACTUS II 670K, GREY OAKS 800K
  • 15 hours Telsa Sales in Europe
  • 2 days Chile Tests Floating Solar Farm
  • 17 hours Read: OPEC THREATENED TO KILL US SHALE
  • 2 days Poll: Will Renewables Save the World?
  • 12 hours The Political Debacle: Brexit delayed
  • 3 days US-backed coup in Venezuela not so smooth
Alt Text

Oil Markets In Limbo Ahead Of OPEC Meeting

Oil investors are taking a…

Alt Text

Oil Is Set To Rise, But The Rally May Not Last

The comparative crude oil inventories…

Alt Text

Is This As Good As It Gets For Oil?

Oil prices have rallied significantly…

Joe Weisenthal

Joe Weisenthal

Joe is a writer for Business Insider.

More Info

Trending Discussions

Nomura: $220 Oil Possible if Libya and Algeria Halt Oil Production

Forget the biggies.

If just Algeria and Libya were forced to stop production, oil could rocket to $220.
That's according to Nomura (via ZeroHedge):

We have identified three distinct stages of the Gulf war which led to changes in oil prices and we believe we are only at the initial stage of the three stage process for the current MENA unrest. During the initial stage of the Gulf war, prices moved up by 21%. This is comparable to what we have seen recently when oil price went up by 13% since the beginning of the MENA unrest. As we see further evidence of real supply disruption, we will be moving into Stage 2 of the event – during this stage of the Gulf war, prices moved to its peak (up 130%) within a period of two months. On the assumption that prices will move up by the same amount, we could see US$220/bbl should both Libya and Algeria halt their oil production. We could be underestimating this as speculative activities were largely not present in 1990-91.

The firm notes that if these countries go down, spare capacity will basically be lower than ever.

OPEC Spare Capacity
Image: Nomura

By. Joe Weisenthal




Download The Free Oilprice App Today

Back to homepage

Trending Discussions


Leave a comment
  • Anonymous on February 25 2011 said:
    Whether or not this is an accurate forecast, it demonstrates just how fragile 'cheap oil' is.

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News