And right back to flat.
/CL + .04
This is amazing, since there is no enforcement mechanism. For decades they agreed on targets, which drove up speculative pricing, and they all cheated. The fact that they can’t even go back to agreeing in public to drive up prices indicates some serious back-room politics that isn’t reaching the press.
I’ll wager that back room politics is Sunni vs. Shia. The middle east is at war, but they are doing it economically. Saudi Arabia is hurting itself badly in terms of foreign exchange. There has to be a reason they are pursing policies that could potentially cause the downfall of the House of Saud. (The king stays in power by paying off problems. Paying away problems has been bad politics since recorded history began.)
Gas here in Florida up 25 cents overnight .
The reason ‘d’etre for OPEC has always been to line the coffers of the those nations at the expense of the producing world. Now, when many more sources of oil drive the prices down, they cannot agree to limit their production because they have no other sources of income/revenue. For 60-70 years they have drained the treasuries of the west and lived extravagantly as elites in their own countries while the peasants still live in 7th century conditions.
So, they will not individually or collectively draw down production as the demand for cash is strong-good for the rest of the producing world to a degree ( yes, $10 oil is not good for newer entries to the market, espc using more costly technologies).
Their greed will be their collective downfall-someday the average peon in the ME will realize they can have a piece of the pie, as “Allah wills it”.
“the love of money is the root of all evil”
Regards
Oil futures are up, slightly at 49.32. Probably still going to 60, but maybe not.
The Liberals just added a 16 cent a liter tax here , just wait until Trudeau adds his share