MARKET SHARE – ITS ABOUT MARKET SHARE:
Opec has lost twenty years of market share. Their % of market is shrinking. They are so broke from 120 a barrel plunging 65% they can’t fund their nations from Russia to Saudi Arabia.
To get oil up they cut back on their sales to their customers. Economically this is the movie DUMB & DUMBER. So now they tell the market as oil is crashing – we will extend our DUMB plan and we will cut back even MORE.
This has two outcomes:
- The price goes up a second or two then the oil output from NON OPEC producers rises and takes lowers the price again. For sure.
- The customers of OPEC get mad and get even. As buyers loyal to OPEC for years they leave OPEC and take supplies from the new supplier – forever moving market share away from OPEC.
OPEC lost in decades of a long long time ago like a fairy tale in economics – end up where they thinking wrongly – we can make more selling less at higher prices. If this works its great. If it fails which is IS and HAS – they sell less and less at ever LOWER PRICES as OPEC has lost influence and control as we have pointed out in this blog. The world is now in:
* FULL BLOWN TRADE WARS
* IT is NOW every nation for itself
*The nations support currency manipulations – export price – and market share
OPEC is loosing market share and paying to do so.
We’ll see how this all works out. I would not bet LONG in oil folks. Those reading my blog have made and will make in our opinion FORTUNES on this opinion.
BERNY DOHRMANN – KEEPING THE TRUTH ON HIGH— May 17, 2017