oil

Oil War Saudi Arabia vs Iran

Oil Price War: Saudi Arabia vs. Iran

One of the first lessons in Econ 101 is Supply vs. Demand. If the supply is curtailed and demand stays the same the price will go up. A somewhat later lesson is that Government sanctions reduces supply and drives prices up. The classic example of this is the drug trade. But recent sanctions by the U.S. has had quite the opposite effect (at least temporarily).  What has happened is that the U.S. has put trade sanctions on Iran. So Iran is offering its oil at a discount to those willing to go against U.S. wishes and buy their oil anyway. In response Saudi Arabia is offering to match Iran’s price without the risk of offending the United States. So in effect we have a price war (i.e. a race to the bottom). Chances are this won’t last long if the sanction breakers suffer severe enough consequences.

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Opec- New Cartel

New Oil Cartel Threatening OPEC

When reports emerged that India and China are in talks about forming an oil buyers’ club, OPEC was probably too busy with its upcoming June 22 meeting to concern itself with that dangerous alliance. Now, it may be time for it to start worrying.

“The timing is right. The boom in U.S. oil and gas production gives us greater leverage against OPEC,” the Times of India quoted an Indian official as saying last month after the formal start of said talks. The two countries, after all, account for a combined 17 percent of global oil consumption and they are the ones that would be the hardest hit if prices rise as a result of OPEC’s actions.

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Saudi Crude Oil Supply

Can Saudi Arabia Prevent The Next Oil Shock?

Current volatility in the global oil market is, according to most analysts, due to fears that markets are facing a severe threat. A doomsday scenario is being painted in the media which suggests that oil prices will collapse as Moscow and Riyadh allow for OPEC compliance to slip, and that a glut of Saudi crude will be hitting the market. This assumes that Saudi Arabia is able to produce at least 12.5 million bpd, But no one has really assessed the Saudi spare capacity capabilities…

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IEA: High Oil Prices “Taking A Toll” On Demand

Geopolitics has taken over the oil market, driving oil prices up to three-year highs. The inventory surplus has vanished, and more outages could push oil prices up even higher. Yet, there are some signs that demand is starting to take a hit as oil closes in on $80 per barrel.

In the International Energy Agency’s (IEA) May Oil Market Report, the agency said that OPEC might be needed to step in and fill the supply gap if a significant portion of Iran oil goes offline. Saudi Arabia suggested shortly after the U.S. announced its withdrawal from the Iran nuclear deal that OPEC would act to mitigate any supply shortfall should it occur.

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Guyana Map

Is Guyana Prepared For An Oil Boom?

It’s pretty much common knowledge that Socialism has destroyed the economy of Venezuela despite its abundance of oil. But we don’t hear much about its neighbor Guyana. One might guess that if Venezuela has oil Guyana might be similarly blessed. And it might finally be beginning its own oil boom. Today’s article by Viktor Katona for Oilprice.com looks at Guyana’s coming oil boom. 

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Bitcoin and Oil

Why The Next Oil Boom Will Be Fueled By Blockchain

The world’s most important industry has been carrying on without any significant changes in its day to day routine for far too long.  But now, the new tech on the block has its sights set on the multi-trillion-dollar oil and gas sector. It’s official: Blockchain technology has infiltrated Big Oil. The hype behind blockchain has reached a full-blown frenzy. And for good reason.

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