Perry Meets with Russian and Saudi Energy Ministers to Blunt Impact of Iran Sanctions on Oil Markets
Renewed Iran sanctions will coincide with election season, granting Russia and Saudi Arabia leverage in negotiations with the United States.
Tehran has limited options to dodge sanctions, most of which are a redux of its 2012 strategy.
Iran and Russia's scaled-down agreement faces long odds, but isn't dead yet.
There once was a time when OPEC did not need to rely on outside producers to achieve its policy goals. That time has passed. The old OPEC is dead, and OPEC+ now stands in its place. What will its reign bring?
OPEC fudges the details. Oil prices rose on Friday in reaction to OPEC's decision to increase output during the second half of the year. Analysts argue that the cartel's actions will not be sufficient to meet the markets' needs.
Market watchers are not sure Iran’s participation in an OPEC agreement is necessary. The Saudis are determined to increase supply, with or without Iran’s agreement.
Given the group’s discord, it’s unclear if OPEC+ will sufficiently handle the current complex market situation, which is experiencing a number of fast-moving events, such as lost supply in Venezuela, Libya, and other producer nations.
OPEC members are split over whether to change strategy, as global oil markets are trading just under $80 per barrel and consuming countries are pressuring producers to increase output.
Unrestricted access to Arctic sea routes will further link China’s developing economy with some of the world's most advanced markets, including the United States, Canada, and Norway.
In today's global oil market, price movements, in either direction, are largely dependent on OPEC's actions and verbal intervention. Current political and market dynamics make it clear that shale was never a panacea.