Opec in a loose meeting to get consensus for an oil cut back, surveyed members at a recent meeting. The formal OPEC meeting is not until November. It became clear that APPEARANCE was as important as REALITY = for oil threatened to plunge to 30.00 dollars. To avoid such a fall yet another new low, the OPEC players issued a loose agreement that – we will cut back about one million barrels a day in production. Our of 33 being produced and 57 being produced including NON OPEC members.
Now they have not agreed on which nations will cut back what to reach that million. Or if they will ever do it. They have till November to see who agrees to limit their own income and loose customers perhaps forever by saying no.
No one believes OPEC will secure an agreement.
OPEC is so desperate to jack the price of oil up artificially – versus supply and demand – that – they indicates IRAN can pump whatever it wants and would be least effected if effected at all. IRAN wants to raise its three million barrels a day to over 4 million and they are doing just that – and nothing is stopping them starved for years from the market place by sanctions – the OPEC announcement that they had an agreement – is an …SKOKIE DOOH type of moment. AHHH I DON’T THINK SO.
So the price of speculator bought oil shoots up a few bucks – but only that. As the market digest who this was APPEARANCE without any substance, the price is going to fall back down.
More oil than the cut back is coming on line from LYBIA. Other nations from Nigeria to Venuezla are advancing their returns to barrels to the market – collectively way beyond the cut suggested – so it has no value to the lake of over supply.
Oil is plentiful.
Oil is replenishing.
Oil is renewing itself in old wells.
The Earth Farts oil and gas. It is make more all the time.
Oil is not scare.
Oil is not expensive.
Only with ARTIFICIAL MONOPOLY CONTROLS can a hidden tax on all people be created by the FEW against the MANY.
The day of artificial and manipulated tex on energy is over.
The production has in weight and % shifted from the small club of producers who once controlled product sufficiently for a short period of years to rewrite the laws of SUPPLY AND DEMAND – so that the market is returning now to SUPPLY AND DEMAND outside monopoly control.
This adjustment period will be painful for OPEC but the time for IT to control in any way the market space – has passed. My readers will come to see the ripe tide of this market issue will become more and more clear and this blog will become prophetic to those who invest in this sector.
Berny Dohrmann – working to Help Opec Nations transition— September 29, 2016