Share This Article

Facebook LinkedIn
Twitter Reddit
Print Email
Pinterest Gmail
Yahoo
Money Morning
×
  • Invest
    • Best Stocks to Buy
    • Stock Forecasts
    • Stocks to Sell Now
    • Stock Market Predictions
    • Technology Stocks
    • Best REITs to Buy Now
    • IPO Stocks
    • Penny Stocks
    • Dividend Stocks
    • Cryptocurrencies
    • Cannabis Investing
    • Angel Investing
  • Trade
    • How to Trade Options
    • Best Trades to Make Now
    • Options Trading Strategies
    • Weekly Trade Recommendations
  • Retire
    • Income Investing Guide
    • Retirement Articles
  • More
    • Money Morning LIVE
    • Special Investing Reports
    • Our ELetters
    • Our Premium Services
    • Videos
    • Meet Our Experts
    • Profit Academy
Login My Member Benefits Archives Research Your Team About Us FAQ
  • Invest
    • Best Stocks to Buy
    • Stock Forecasts
    • Stocks to Sell Now
    • Stock Market Predictions
    • Technology Stocks
    • Best REITs to Buy Now
    • IPO Stocks
    • Penny Stocks
    • Dividend Stocks
    • Cryptocurrencies
    • Cannabis Investing
    • Angel Investing
    ×
  • Trade
    • How to Trade Options
    • Best Trades to Make Now
    • Options Trading Strategies
    • Weekly Trade Recommendations
    ×
  • Retire
    • Income Investing Guide
    • Retirement Articles
    ×
  • More
    • Money Morning LIVE
    • Special Investing Reports
    • Our ELetters
    • Our Premium Services
    • Videos
    • Meet Our Experts
    • Profit Academy
    ×
  • Subscribe
Enter stock ticker or keyword
×
5 Ways to Beat the Fed (and Crush Inflation)

Email this Article

Send with mail | ahoo instead.
Required Needs to be a valid email
Required Needs to be a valid email
OPEC Has Never Done This Before
http://mney.co/2eepJjk
Required Please enter the correct value.
Twitter

OPEC Has Never Done This Before

By Dr. Kent Moors, Global Energy Strategist, Oil & Energy Investor • @KentMoors_OEI • November 2, 2016

Start the conversation

Comment on This Story Click here to cancel reply.

Or to contact Money Morning Customer Service, click here.

Your email address will not be published. Required fields are marked *

Some HTML is OK

Dr. Kent MoorsDr. Kent Moors

As you read this, Marina and I are flying out to Seattle for something we do several times a year - spoiling two of our grandkids. The other two live in Germany, which requires its own distinct spoiling campaign.

Now, I regularly serve as the sounding board for a wide gamut of observations from all types of sources. It seems to come with the territory. And as we were traveling to the airport, I was reminded of some very startling rumors I recently heard about OPEC's oil cap negotiations.

What I'm hearing now suggests that, in addition to another meeting between OPEC and Russia, there is now an attempt to get OPEC and U.S. producers to sit down at the same table.

That's never happened before.

And that's not the only reason why these rumors (if true) are so startling...

You see, the reason why this has never happened before goes to the very heart of the U.S. oil industry...

There's Been No Word on U.S. Involvement from My Saudi Sources

OPECThis particular piece of information comes separately from three usually reliable contacts. Of course, in matters like these, it is difficult to determine whether these are genuinely independent sources with access to their own information, or just several mouths repeating the same rumor.

After all, between a World Series and the rising exhaustion of a particularly distasteful presidential election, there is a lot of room to spin tales.

More from Kent: My (Bold) 2017 Oil Price Forecast - and Today's Most Profitable Energy Play

Now, I haven't heard anything about this U.S.-OPEC meeting from my usually reliable sources in Saudi Arabia or the United Arab Emirates, sources that tend to be "in the know" about such developments. Still, even these sources have been sounding evasive lately.

And that just makes me even more curious.

The rationale for such a meeting is quite straight-forward. The absence of American oil producers in the global conversations leading up to an oil production cap has been like avoiding an 800-pound gorilla in the room...

Tricky, to say the least.

Some analysts considered the initial Saudi-led OPEC move almost two years ago to defend market share and let prices drop, instead of defending oil prices by cutting production, to be directed against U.S. producers of new unconventional crude (shale and tight oil).

But the real target was different...

Russian Oil Exports to Asia Were OPEC's Real Target

In my view, the more immediate target of OPEC's move was Russia, and the battleground was the Asian market. This is where the global energy competition has been moving. Asia will be the primary driver of global demand over the next several decades.

By reducing their prices, the Saudis made it hugely expensive for better grade Russian crude to move along the new East Siberia-Pacific Ocean (ESPO) export pipeline for transit to Asia. Turning that pipeline off would remove a primary impediment to continued Saudi/OPEC dominance in the Asian market.

Nonetheless, the sudden rise of new U.S. volume in the market certainly would have changed calculations of supply to meet demand, although it remained indirect at best. That's because in late 2014 the only real impact rising American production had on global trade was how it affected U.S. import levels.

We had Congress to thank for that...

Join the conversation. Click here to jump to comments…

Dr. Kent MoorsDr. Kent Moors

About the Author

Browse Dr. Kent's articles | View Dr. Kent's research services

Dr. Kent Moors is an internationally recognized expert in oil and natural gas policy, risk assessment, and emerging market economic development. He serves as an advisor to many U.S. governors and foreign governments. Kent details his latest global travels in his free Oil & Energy Investor e-letter. He makes specific investment recommendations in his newsletter, the Energy Advantage. For more active investors, he issues shorter-term trades in his Energy Inner Circle.

… Read full bio

Login
guest
guest
0 Comments
Inline Feedbacks
View all comments
LIVE
Visit Money Morning Live


Latest News

January 19, 2023 • By Money Morning Stock Research Team

These Stocks Could Go To $0

January 9, 2023 • By Money Morning Stock Research Team

The Government Is Pouring $391 Billion Into These Stocks - Buy Now

December 27, 2022 • By Money Morning Staff Reports

6 IPOs in 2023 You Can’t Afford to Miss
Trending Stories
ABOUT MONEY MORNING

Money Morning gives you access to a team of market experts with more than 250 years of combined investing experience – for free. Our experts – who have appeared on FOXBusiness, CNBC, NPR, and BloombergTV – deliver daily investing tips and stock picks, provide analysis with actions to take, and answer your biggest market questions. Our goal is to help our millions of e-newsletter subscribers and Moneymorning.com visitors become smarter, more confident investors.

QUICK LINKS
About Us COVID-19 Announcements How Money Morning Works FAQs Contact Us Search Article Archive Forgot Username/Password Archives Profit Academy Research Your Team Videos Text Messaging Terms of Use
FREE NEWSLETTERS
Total Wealth Research Power Profit Trades Profit Takeover This Is VWAP Penny Hawk Trading Today Midday Momentum Pump Up the Close
PREMIUM SERVICES
Money Map Press Home Money Map Report Fast Fortune Club Weekly Cash Clock Night Trader Microcurrency Trader Hyperdrive Portfolio Rocket Wealth Initiative Extreme Profit Hunters Profit Revolution Warlock's World Penny Nation Quantum Data Profits Live Trading Alliance Trade The Close Inside Money Trader Expiration Trader Vega Burst Trader Flashpoint Trader Darknet Hyper Momentum Trader

© 2023 Money Morning All Rights Reserved. Protected by copyright of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including the world wide web), of content from this webpage, in whole or in part, is strictly prohibited without the express written permission of Money Morning.

Address: 1125 N Charles St. | Baltimore, MD, 21201 | USA | Phone: 888.384.8339 | Disclaimer | Sitemap | Privacy Policy | Whitelist Us | Do Not Sell My Info

wpDiscuz