Commodity Trade Mantra

Posts Tagged ‘Oil Reserves’

OIL - The Untold History of Black Gold & How it began the Political Strategies of the West

The political strategy of the U.S. had to adapt to provide for the needs & wants of the American population. The ‘70s marked the turning point when the U.S. shifted from being an oil exporter to the world’s largest oil importer. The oil crisis of 1973 was the game changer that transformed the international political & financial system into the current system of petrodollars & oil wars.

The US Shale Industry Is Painfully Adapting to Low Oil Prices

The rise in oil prices over the past six months has come as a blessing for the battered US shale producers. Oil prices have risen more than 50% since January, giving a glimmer of hope to the US oil industry that the worst of the oil crisis might finally be behind them. Moreover, it forced the shale producers to adapt by reducing production costs and increasing efficiency.

Iran Offers Discounts On Asian Crude Oil, Hits Saudi Where It Hurts Most

Iran has introduced a discount on the June contract for its heavy crude oil going to Asia, just after Saudi Arabia announced a price increase for its own June contract for the continent. With the discount, Iranian crude oil will be noticeably cheaper for Asian clients than both Saudi and Iraqi crude. Saudi Arabia and Iran are playing a game of barrels & Asia is the ultimate prize.

Time to Play the Rebound In Oil Prices

The oil industry is permeated in gloom right now because of oversupply & weak demand. Small producers are going out of business & a wave of energy-related bond defaults is about to wash over the fixed-income markets. But the oil majors are positioning themselves to benefit from the rebound of prices in late 2016 and early 2017. The time to play this rebound is now.

$20 Oil Looms As Iran-Nuclear Deal Nears Deadline

Iran is a sleeping oil giant holding 9% of the world’s proven oil reserves & with an estimated 2m barrels per day of excess supply already sloshing around international markets, any increase in Iranian output could easily trigger a further rout in oil prices. OPEC may clamp down on this in June, but by then oil may already be selling for $20.

Why OPEC Will Tolerate Cheap Oil

While the current dip in energy prices clearly does hurt Saudi Arabia, it hurts her enemies far more, particularly Iran & Russia, which has been a key enabler of Iranian power. Putting pressure on Russia has also become a key strategic interest of Washington. Cheap oil likely will protect & increase Saudi Arabia’s oil market share.

Will US succeed in Breaking Russia to maintain Dollar Hegemony?

We are witness to the greatest struggle of our age – the battle to maintain global dollar hegemony & with it US economic, military & political dominance of the entire planet & this struggle is now coming to a head. US debts are now at such levels that if the US dollar loses its reserve currency status, the US economy will implode.

Russia Threatens to Impose Sanctions

Sanctions work, sort of, against Iran because the market there is miniscule. If Russia imposes retaliatory measures, you can bet sanctions cooked by the West will fizzle in short order. Obama & Congress may rant about the evil Vladimir Putin & the aggressive Russian bear, but that’s all hot air & rhetoric.

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