Centre for Global Energy Studies Says Closing After 24 Years

Feb 05, 2014 12:19 pm ET

(Updates with comment in third paragraph.)

Feb. 5 (Bloomberg) -- The Centre for Global Energy Studies, a consulting firm founded by a former Saudi Arabian oil minister, said it’s closing after 24 years.

CGES, established in January 1990 by Sheikh Ahmed Zaki Yamani, is “passing into history,” Leo Drollas, chief economist for the London-based researcher, said in an e-mail today. Yamani was Saudi Arabia’s oil minister from 1962 to 1986, a period that included the kingdom’s nationalization of its oil industry and the crude export embargo organized by Arab producers in 1973.

“CGES have provided an excellent view of the oil market, detaching themselves from the short-term static to give a nuanced and insightful long term perspective,” said Christopher Bellew, a senior broker at Jefferies Bache Ltd. in London.

The firm has provided research and analysis to oil companies, governments, banks and other organizations for the past two decades, according to its website. It employs three senior analysts and two junior analysts.

CGES correctly anticipated a decline in Brent crude prices last year. Drollas estimated in an interview on Feb. 13, 2013 that futures were unsustainably high at $118 a barrel, and that Saudi Arabia was content with a level of $95 crude. Brent on the ICE Futures Europe exchange in London sank to the year’s low of $96.75 within two months.

Oil prices remain “high because Saudi Arabia and its confreres in OPEC want them to be,” Drollas said in the report e-mailed today, entitled “Valedictory Thoughts.”

--Editors: Alaric Nightingale, Raj Rajendran