Heroes of Ukraine

«Market Leader» - news and previews making you rich.

Monday, 22 July 02:39 (GMT -05:00)



Stock and commodities markets

OPEC Loses Grip on Global Energy Market


According to many international experts, the OPEC, which used to be in charge of the global energy market, now seems to be losing its control over it. The cartel is yet to fight for its place under the sun amid a new pricing-regulation reality.
 
The control over oil pricing is now shifting towards a new decision-making center. International experts belive that the new center will embrace the USA, Russia, and Saudi Arabia. For those of you who don't know, today's oil prices are determined mostly by the  OPEC+ agreement signed by the cartel as well as some other non-OPEC  oil nations led by Russia. Donald Trump's administration is now claiming their own seat at the decision-making table.
 
To make the OPEC+ participants more  cooperative, Washington may well spread their anti-cartel legislation over the OPEC. According to Bloomberg, the cartel is already working on some counter-measures to respond if the US legislators do eventually approve the anti-cartel bill. It's interesting to note that the OPEC is consulting American lawyers on that matter. Within the next few days, they are planning to meet with White & Case LLP.
 
The OPEC participants want to get some recommendations on the next steps required to be taken if the NOPEC bill is approved and becomes a law. For those of you who don't know, NOPEC stands for No Oil Producing and Exporting Cartels Act. The bill was introduced by in May 2018. A couple of weeks ago, the Senate amended Sherman's anti-monopoly act of 1890. For those of you who don't know, this act destroyed John Rockefeller's Standard Oil Corporation more than 100 years ago. Supposedly, after passing the NOPEC bill, Washington will get the opportunity to sue the OPEC for manipulating oil prices.
 
Previously, Donald Trump criticized the cartel. He blamed the OPEC for artificially raising oil prices and urging the cartel to increase their oil production. At this point, the OPEC+ participants have already started raising their daily oil production within the scope of the modified OPEC+ agreement. As you probably know, back in late 2016, the OPEC+ participants agreed to cut their total production of crude oil by as much as 1,8 million barrels a day against the figures seen in October 2016. Later on, an oil production collapse in Venezuela led to exceeding the goal. This i basically why they decided to raise their total production by 1 million barrels a day. the decision was made during the recent OPEC+ summit in June 2018. Now it seems that the production hike goal is also exceeded.
 

Making a trinity union in the global energy market

 
The other day, cartel representatives reported that agreement execution dropped down to 121% in June. Some international observers call this the making of a new alliance between the USA, Russia, and Saudi Arabia. This alliance is expected to be coordinating the global market of crude oil.   
 
The observers sat that this kind of an alliance have been existing for decades. It started as an alliance between the USA and Saudi Arabia to resist the USSR. So, Russia ma join the alliance as a major player in the oil market while all the other OPEC participants aren't taken into account anymore as they have a lot of economic problems and their decisions are easy to anticipate. 
 
At the same time, some other observers don't belive that such a trinity union will actually come into existence at some point in the near future. They say that the USa cannot participate in agreements like OPEC+ because to do so, the US government needs to be able to regulate their own oil production quotas
 
The domestic American market of crude oil has a lot of oil companies, which makes it next to impossible to coordinate all of them change their production. The government can only regulate the export of crude oil. However, the USA can influence oil prices through regulating the circulation of U.S. dollars.
 
So, the USA's role in the global market is to back acceptable oil prices. Still, if the USA stops importing crude oil and starts consuming its own oil, the government's policy may change. In this case, American politicians will be more comfortable in regards to the Middle East and turn some of their allies into enemies. Given the fact that the USA wants to curb China's growth, American politicians don't mind disrupting the export of Middle Easter oil to China.
 

 

You are free to discuss this article here:   forum for traders and investors

 

Add to blog
Got a question? โ€“ Ask it here »
 

EUR / USD pair finished the trading week with an increase of 1.48%

The EUR / USD pair is still trading in the green zone against the background of the publication of strong data on economic activity in the eurozone and possible changes in the monetary policy of the Fed in the coming months.

 
Publication date: 24 June 11:57 PM

Gold is going to update the annual highs

On Thursday, gold finished trading with a confident growth, more than 0.7%, and the quotes again reached the maximum values โ€‹โ€‹of the year. Investors are actively buying gold as a protective asset against the background of high uncertainty about the prospects for the development of the global economy and exacerbation of geopolitical risks.

 

Publication date: 14 June 12:51 PM

Russia Is Happy: Oil Prices Heads for 2018 Highs

Crude oil keeps on appreciating. Brent oil has come close to $72/b. Apparently, all of the major oil exporters, including Russia, whose national budget has been heavily dependent on the export of crude oil for many decades, are now happy with the current oil price rally. The thing is that the prices have already gone rally high relative to major lows set in late 2018 and early 2019. At this point, they have already come close to last year's highs.

Publication date: 13 April 12:17 AM

Masterforex-V Names World's Biggest Exchanges In Terms Of Market Capitalization

 Stock exchanges are known to be the catalyst of the economic conditions in a certain state or the entire world. Stock exchanges trade the stocks of most enterprises representing every economic sector. Speaking about the blue chips, these are the stocks of big-scale corporations listed on several exchanges simultaneously.

Publication date: 08 April 12:11 PM

CBOE Suspends Bitcoin Futures

The CBOE Futures Exchange (CFE) has recently announced the suspension of Bitcoin futures contracts within the scope of its trading platform. According to the official statement made by the CFE, which is a CBOE branch, the top management is currently considering the fate of Bitcoin futures. In particular, XBT Bitcoin futures for March are canceled. 

 
Publication date: 25 March 12:15 PM

FxPro Introduces Renewed Site

FxPro, a major international FX broker, has recently introduced a brand-new version of its official website. It looks inspiring! FxPro proves by its own example that trading and beautiful design can come hand in hand.

 
Publication date: 25 March 12:40 AM

Masterforex-V Names the Best Broker for Trading Dow Jones

The Dow Jones Industrial Average, the DJIA for short, is one of the oldest and most popular stock indexes in the United States. According to Masterforex-V Wiki, the index plays the role of an unbiased indicator of the entire American economy by scanning the averaged figures for America's 30 biggest corporations(Coca-Cola Co., Apple Inc., Boeing Co., The Goldman Sachs Group, American Express Co., and so much more). 

Publication date: 17 February 02:59 AM

Bitcoin Is Trading At 7-Week Lows, FortFS

Despite the prolonged downtrend seem over he last few months, the cryptocurrency market still remains a point of interest for millions of international traders and investors. Many of them still belive that blockchain is going to change the global financial market to make it simpler, more transparent and easy-to-comprehend. Some experts share this idea, especially as they report about more sophisticated and improved technologies used in trading these days.

 

 
Publication date: 14 February 12:33 AM

Alpari Gold: Philharmoniker and Krugerrand - Private Investors

Alpari Gold, which is a part of the Alpari financial brand, has had a professionally bright month. November's biggest event was the participation in a prestigious annual international expo named COINS-2018. 

 
Publication date: 29 November 07:57 AM

Alpari Gold: Philharmoniker and Krugerrand - Private Investors

Alpari Gold, which is a part of the Alpari financial brand, has had a professionally bright month. November's biggest event was the participation in a prestigious annual international expo named COINS-2018. 

 
Publication date: 29 November 07:57 AM