Oil Heads for Two-Year High

The video discusses OPEC's strategy of involving non-OPEC countries to support production cuts and supply restraint. It highlights the limited impact of these countries due to their small production capacity. The video also covers the recent rise in WTI oil prices, attributed to the shutdown of the Keystone Pipeline, which has caused a supply disruption and led to backwardation in oil contracts. The situation is expected to stabilize once the pipeline issue is resolved.

What is the main reason OPEC invited 20 non-OPEC countries to the meeting?

• To discuss environmental policies

• To increase oil production

• To demonstrate support for production cuts

• To negotiate new oil prices

Why are the new non-OPEC countries unlikely to make significant production cuts?

• They are not interested in the oil market

• They are small producers with mature fields

• They are large oil producers

• They have already increased production

What is causing the oil market to be tight according to the transcript?

• Increased global demand

• OPEC's decision to cut production

• Rising oil prices and backwardation in WTI contracts

• Difficulty in finding hotel rooms in Vienna

What is the primary reason for the backwardation in WTI contracts?

• Decline in global oil demand

• Increased oil production in the USA

• Shutdown of the Keystone Pipeline

• OPEC's new production strategy

How has the shutdown of the Keystone Pipeline affected the oil market?

• It has increased oil production

• It has caused pressure on inventories and increased prices

• It has decreased oil prices

• It has led to a surplus of oil