Tuesday, June 7, 2016

Analysts declare OPEC as finished, which opens door for power vacuum in energy sphere

As last week’s OPEC meeting in Vienna came to a close, once again no consensus was formed on price and production levels, leaving OPEC to now be what many analysts are calling, a dead and finished organization.
For the entire year, and especially after the U.S. removed sanctions from Iran to allow them to start selling oil in the public markets again, OPEC has been split between production increases and freezes, and it has led the coalition to crack after almost 50 years of lock-step agreement between the world’s major producers of oil.
This of course now opens the door to a vital power struggle, which is likely to see Russia emerge as the head of a new energy partnership that could leave Saudi Arabia out in the cold, since their reserves are on the downside of peak production, and the U.S. has chosen to throw them under the bus now that the petro-dollar is out as the global standard.

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