OPEC's collusive actions run counter to established international anti-competitive norms at American expense. But by amending the Sherman Act, NOPEC offers a tool to combat these activities.
While the result from Vienna is ostensibly a success, there are obvious cracks in OPEC’s cohesion, as well as in its strategy to tighten up the market.
Against the backdrop of rising tension in the Persian Gulf, OPEC+ will meet to decide next steps
U.S. Sets Record for Oil Production Growth in 2018; U.S. Expected to Drive Global Supply Growth Through 2024
Both BP and the IEA expect U.S. production to drive global supply growth in the coming years, but uncertainty about shale's production trajectory was marked out as a potential concern.
Russian discontent over Saudi intentions to reduce production is a likely potential flashpoint for the upcoming meeting—but internal OPEC politics, particularly between Saudi Arabia and Iran, mean this summit is rife with tension that threatens to upset proceedings.
The members of the OPEC+ coalition have different economic incentives. Most member countries are producing as much as they can and have little scope for higher output, so they are on board with an extension of production cuts.
Any decision to reduce oil inventories OPEC's upcoming meeting will be greatly helped by Venezuela’s declining oil production, which has just fallen to its lowest levels since January 2003.
A series of apparent attacks on oil infrastructure in the Arabian Peninsula thrusted geopolitical risk to the forefront of market concerns. Against a backdrop of an already tightening supply-demand balance, the possibility of a serious supply outage poses a major risk to market stability.
On April 29 the national average gasoline price reached a new 2019 high of $2.97 per gallon—already matching last year's high—with a variety of factors expected to push prices even higher.
The U.S. State Department announced on April 22 that it would let all Iran sanctions waivers expire at the beginning of May as part of the Trump administration’s “maximum pressure” campaign on Iran.