The next war in the "War on OPEC"

[frigidweirdo]

Michael Snyder Blog Guess What Happened The Last Time The Price Of Oil Crashed Like This Talkmarkets

I've been reading a few things about the economy that is apparently going to crash soon. Not sure why these stories were appearing when historically recessions end and then move into periods of boom for seemingly natural reason, I've been looking at a few articles.

This one states that the last time the price of oil dropped so sharply in 6 months was 2008 and the economic crisis and all that.

However this says that basically OPEC is flexing its muscles and trying to make US oil, which costs more to produce, go bankrupt by lowering prices of world oil.

In 1999 Hugo Chavez came to power in Venezuela and attempted to unite OPEC, in the subsequent years OPEC countries like Venezuela, Iran, Iraq and Libya, those were were anti-USA officially have suffered, whereas those countries who are officially US allies didn't suffer.

Well, Iraq and Libya have seen regime change, Venezuela did for a few days but the US seems to leave them alone now Chavez has died and been replaced by a much less energetic man, there's Iran left.

If the Republicans get a man in the White House, will this be the next war?

 

[Mr. H.]

OPEC does not want to restrict production and lose market share. I think they'll stick to their guns and let crude fall as it may.

What we'll see is what Clinton allowed to happen during his reign- Foreign countries will dump their crude on our markets at below production cost. An illegal move. Yet, Clinton sat idly by while thousands of US producers went out of business and tens of thousands lost their jobs. He could have given a fuck.

 

[frigidweirdo]

OPEC does not want to restrict production and lose market share. I think they'll stick to their guns and let crude fall as it may.

What we'll see is what Clinton allowed to happen during his reign- Foreign countries will dump their crude on our markets at below production cost. An illegal move. Yet, Clinton sat idly by while thousands of US producers went out of business and tens of thousands lost their jobs. He could have given a fuck.

You know what will happen, as soon as they get rid of the US companies through too low prices then they'll hike up the prices again. Who won't like that? The US govt won't.

Who likes being controlled by OPEC? It hasn't happened since Chavez was getting things going against for OPEC.

 

[waltky]

OPEC goin' down?...

Say goodbye to OPEC, powerful Putin pal predicts
May 10, 2016 - Internal differences are killing OPEC and its ability to influence the markets has all but evaporated, top Russian oil executive Igor Sechin told Reuters in some of his harshest remarks ever about the oil cartel.

Russia, which has been hit hard by the oil price collapse, was flirting with the idea of cooperating with OPEC in recent months until tensions between OPEC members Saudi Arabia and Iran ruined a global deal to freeze output. Sechin - one of the closest allies of President Vladimir Putin - was the only Russian official to consistently oppose the deal with OPEC even after the Kremlin effectively endorsed the plan.

Now that his gloomy predictions about talking to OPEC have come to pass, Sechin feels vindicated and wants to help Russia avoid similar embarrassment in future. "At the moment a number of objective factors exclude the possibility for any cartels to dictate their will to the market. ... As for OPEC, it has practically stopped existing as a united organization." "The company (Rosneft) was skeptical from the very beginning about the possibility of reaching any sort of joint agreement with OPEC's involvement in current conditions," said Sechin, in comments over the weekend which were embargoed until Tuesday. "Just to remind you, the only one question with which we responded to those who were interested to know our position: 'Who should we agree with, and how?' The development of the situation has clearly shown we were right."

Rosneft CEO Igor Sechin attends a briefing dedicated to the signing of a contract between Rosneft and Essar Oil Ltd. companies in Ufa, Russia​

Sechin's comments about the end of the era when OPEC could influence prices chime with those of Saudi Arabia's newly appointed energy minister Khaled al-Falih. Falih, who took over on Saturday from long-serving Ali al-Naimi, has been very vocal in the past year about his views that the oil market needs to rebalance through low prices and that the Saudis have the resources to wait. Falih's ultimate boss, Deputy Crown Prince Mohammed bin Salman, who oversees Saudi oil policies, has also signaled that the world is moving to a new era where supply and demand rather than OPEC will determine prices.

Sechin, who was born in 1960 - the same year as Falih - is also calling on Russia to abandon any hope that prices can be fixed by anything other than market rebalancing. "At the moment, key factors which are influencing the market are finance, technology and regulation. We can see this with the example of shale oil which ... became a powerful tool of influence on the global market," Sechin said in the emailed comments.

Exclusive: Say goodbye to OPEC, powerful Putin pal predicts