Vitol, Glencore and Trafigura together trade more than 17m barrels of crude oil  the cost of everything and refined fuels every day, according to company statements and industry sources, handling daily volumes equivalent to more than half the Opec cartel’s output.

Their rapid expansion, up from a little over 10m barrels a day in combined oil volumes in 2014, underlines the rising influence and power of a trading industry that for decades tried to shun close scrutiny. Together with Gunvor and Mercuria, the other two top-five independent oil traders, they account for 22m barrels a day. Thats just the top FIVE FOLKS – which drowns OPEC in the world markets as 2017 insignifigent. Truly. The ball game has new market share rule books. 

We have reported to you today the OIL  market is about MARKET SHARE in 2017 and 2018. Market share is where those  22 million barrels a DAY are landing – to which customers – to which nations – on what terms of contracts long term and short term? Today Saudi – foolishly as we wrote last year and this – jawboned market speculators to drive prices up to above $ 50.00 for the space of less than a month. This silly failed price pollicy back fired as we said it would – were Saudi with prices plunging  has lost untold market share and invested billions to other OPEC member benefits to LOSE THEIR KINGDOM’S MARKET SHARE ( forever once its gone ). OPEC members want Saudi to continue to squander their wealth by subsidizing them to take further market share from Saudi. This fools game is going to SHATTER OPEC completely.

We warned you. Oil could plunge into the $ 30.00 and below  something range for an extended time. The world is DROWNING IN OIL as we have reported to you for years now. The right price will find its MARKET SHARE that is oil economics today. A new set of box top rules all about protecting market share. Saudi is a slow learner. How long before they see their policy is FAILED POLICY economically?

Opec has lost all control on the supply side. They no longer matter. AT ALL. Did you look at those top five trading 22 million barrels a day – now add in the next 50 leading traders. Where does OPEC matter in that market share placement machine?

Their own members are profiting as Saudi pays billions to allow other OPEC members to virtually STEAL market share and customer base from SAUDI who is paying them to do so. It is insane. Saudi can not:

  1. Drive producers to stop production
  2. Influence the world oversupply
  3. Determine price
  4. They can lose more of their market share
  5. Market share that will never return to Saudi

If Saudi extends the artificial price idea to rebalance supply by cutting their own profits and flows to the market – their own members will steal their market share. Russia has played Opec as if they were children. Profiting by the billions offering Saudi instability and using their windfall oil  money to bring down the Kingdom. Does Saudi not see the sword is double edged and the writing has their King’s name upon it?

So the insanity of oil oversupply in markets is not stoppable. Oil has gone from 115.00 a barrel to under 40 dollars a barrel in a finger snap of time. The speculative temporary bubble price for oil as never a market supply demand issue. The world is drowning in oil supply. There is more than enough oil to meet all demands. Oil right price is being driven by MARKET SHARE ECONOMICS and the rebalancing is tearing the foundation economics of SAUDI apart. We are confident this market share failed policy and hemorrhage is going to impact Saudi Aramco Offering IPO price in the markets – that may become one of the largest failed underwritings of all times. We’ll see.

Today policy is not on the side of OPEC. The future is a divided bitterly feuding OPEC fighting for market share while the BROKER INDUSTRY who really control market share today – over 22 million barrels a day they alone decide WHO GETS MARKET SHARE – is the new OPEC .

Opec is a dead on arrival concept in 2017 and giving it weight on energy investing is to risk a great deal. There is no real OPEC. Economically – it is every nation for themselves period. And Saudi is starting to see that clearly in their own wallet.

The Brokerage spiral is now the  MARKET SHARE WARS  which are fully  on and OPEC is divided and never to be united again. Saudi is losing the market share wars. New winners are rising including the USA.

OPEC is a joke economically and  no longer matter and the world market place knows that.

Oil the COST OF EVERYTHING – its a new ball game folks in 2017.

You now know why based on the data.


Berny Dohrmann – Keeping the oil lamp light on for your wallet …