2014 could shape up as a transformation year for oil, with prices falling on increased supply of North American crude and overproduction within OPEC. The cartel met last week in Vienna and agreed to keep production unchanged at 30 million barrels of crude per day (b/d). This target will be challenged as sanctions on Iran are loosened, adding a potential 4 million b/d of crude to an already oversupplied market.
With fiscal troubles throughout OPEC's membership and new supply opportunities arising, the group's target of 30 million b/d will be challenged and could lead to a sharp drop in the price of Brent crude oil.
This segment is from Thursday's edition of "Digging for Value," in which sector analysts Joel South and Taylor Muckerman discuss energy and materials news with host Alison Southwick. The twice-weekly show can be viewed on Tuesdays and Thursdays. It can also be found on Twitter, along with our extended coverage of the energy and materials sectors @TMFEnergy.
Joel South has no position in any stocks mentioned. Taylor Muckerman has no position in any stocks mentioned. The Motley Fool recommends Chevron. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.