Heroes of Ukraine

«Market Leader» - news and previews making you rich.

Tuesday, 18 December 20:29 (GMT -05:00)

Stock and commodities markets

OPEC Loses Grip on Global Energy Market

According to many international experts, the OPEC, which used to be in charge of the global energy market, now seems to be losing its control over it. The cartel is yet to fight for its place under the sun amid a new pricing-regulation reality.
The control over oil pricing is now shifting towards a new decision-making center. International experts belive that the new center will embrace the USA, Russia, and Saudi Arabia. For those of you who don't know, today's oil prices are determined mostly by the  OPEC+ agreement signed by the cartel as well as some other non-OPEC  oil nations led by Russia. Donald Trump's administration is now claiming their own seat at the decision-making table.
To make the OPEC+ participants more  cooperative, Washington may well spread their anti-cartel legislation over the OPEC. According to Bloomberg, the cartel is already working on some counter-measures to respond if the US legislators do eventually approve the anti-cartel bill. It's interesting to note that the OPEC is consulting American lawyers on that matter. Within the next few days, they are planning to meet with White & Case LLP.
The OPEC participants want to get some recommendations on the next steps required to be taken if the NOPEC bill is approved and becomes a law. For those of you who don't know, NOPEC stands for No Oil Producing and Exporting Cartels Act. The bill was introduced by in May 2018. A couple of weeks ago, the Senate amended Sherman's anti-monopoly act of 1890. For those of you who don't know, this act destroyed John Rockefeller's Standard Oil Corporation more than 100 years ago. Supposedly, after passing the NOPEC bill, Washington will get the opportunity to sue the OPEC for manipulating oil prices.
Previously, Donald Trump criticized the cartel. He blamed the OPEC for artificially raising oil prices and urging the cartel to increase their oil production. At this point, the OPEC+ participants have already started raising their daily oil production within the scope of the modified OPEC+ agreement. As you probably know, back in late 2016, the OPEC+ participants agreed to cut their total production of crude oil by as much as 1,8 million barrels a day against the figures seen in October 2016. Later on, an oil production collapse in Venezuela led to exceeding the goal. This i basically why they decided to raise their total production by 1 million barrels a day. the decision was made during the recent OPEC+ summit in June 2018. Now it seems that the production hike goal is also exceeded.

Making a trinity union in the global energy market

The other day, cartel representatives reported that agreement execution dropped down to 121% in June. Some international observers call this the making of a new alliance between the USA, Russia, and Saudi Arabia. This alliance is expected to be coordinating the global market of crude oil.   
The observers sat that this kind of an alliance have been existing for decades. It started as an alliance between the USA and Saudi Arabia to resist the USSR. So, Russia ma join the alliance as a major player in the oil market while all the other OPEC participants aren't taken into account anymore as they have a lot of economic problems and their decisions are easy to anticipate. 
At the same time, some other observers don't belive that such a trinity union will actually come into existence at some point in the near future. They say that the USa cannot participate in agreements like OPEC+ because to do so, the US government needs to be able to regulate their own oil production quotas
The domestic American market of crude oil has a lot of oil companies, which makes it next to impossible to coordinate all of them change their production. The government can only regulate the export of crude oil. However, the USA can influence oil prices through regulating the circulation of U.S. dollars.
So, the USA's role in the global market is to back acceptable oil prices. Still, if the USA stops importing crude oil and starts consuming its own oil, the government's policy may change. In this case, American politicians will be more comfortable in regards to the Middle East and turn some of their allies into enemies. Given the fact that the USA wants to curb China's growth, American politicians don't mind disrupting the export of Middle Easter oil to China.


You are free to discuss this article here:   forum for traders and investors


Add to blog
Got a question? – Ask it here »

Alpari Gold: Philharmoniker and Krugerrand - Private Investors

Alpari Gold, which is a part of the Alpari financial brand, has had a professionally bright month. November's biggest event was the participation in a prestigious annual international expo named COINS-2018. 

Publication date: 29 November 07:57 AM

Alpari Gold: Philharmoniker and Krugerrand - Private Investors

Alpari Gold, which is a part of the Alpari financial brand, has had a professionally bright month. November's biggest event was the participation in a prestigious annual international expo named COINS-2018. 

Publication date: 29 November 07:57 AM

USA Will Dominate Global Oil Market, IEA Says

Over the next 5 years, the United States will dominate the global market of crude oil. Up to 80% of the global oil demand growth will be covered by American oil companies, Bloomberg reports with reference to the International Energy Agency.

Publication date: 19 April 07:11 AM

Global Trade War Will Push Gold Price to $1400/oz

According to Bloomberg and some other online sources, the global trade war started by Donald Trump will eventually increase the dollar value of gold. In particular, they say that the price of gold may reach the 5-year high in the near future.

Publication date: 04 April 01:21 AM

OPEC Is Ready To Ask American Shale Oil Companies Not To Boost Their Oil Production

According to the Energy Minister of the UAE, the OPEC is ready to start asking American shale oil producers to stop boosting their shale oil production. The statement was made during the International Petroleum Week (IP Week).

Publication date: 06 March 10:29 AM

Shale Oil Threatens with an Oil Market Crash to 2014 Levels

The two years' period of moderately high oil prices is about to be over, the International Energy Agency assumes. They say that the global supply is likely to exceed the global demand, which will push down oil prices, may be even to the levels of 2014.

Publication date: 05 March 03:50 AM

Alpari Signs Up Russian Sportscaster Vasili Utkin

lpari has always been known for partnering with celebrities. This time this major forex brand has teamed up with famous Russian sportscaster Vasili Utkin. The partnership agreement is valid until the end of 2018.

Publication date: 05 March 01:45 AM

Oil Prices Will Be Affected By Geopolitical Risks in 2018

The end of 2017 was clearly positive for oil-exporting nations. For example, Brent oil futures traded at 66,60 dollars per barrels on December 29th. Will the existing bullish trend persist in 2018? 

Publication date: 16 January 06:32 AM

Euro Exchange Rate Reaches Highest Level Since Late 2014

The common European currency keeps on growing driven by the news on the formation of a new German government. The price rally started in 2017. At the same time, experts are getting more and more optimistic about the prospects of the Eurozone and the European Union in general, Deutsche Welle reports.

Publication date: 16 January 01:49 AM

Experts Criticize OPEC+ Agreement for Unpredictable Outcomes

OPEC exporters may beat the target related to the OPEC+ agreement, which now seems to be a point of concern for international investors, The Wall Street Journal reports.

Publication date: 27 November 05:06 AM