A Long Look At The Changing Global Oil Market - Granite Grok

A Long Look At The Changing Global Oil Market

Oil well pump

This is a long read, but if you’d like a (somewhat) independent view of the effects of Trump-inspired infrastructure build outs in the US and the changing geopolitics of oil, this article will provide a good overview.

If you’d prefer the synopsis, there’s this.

To sum up, oil prices stand neither to go up or down but remain steady, and that’s a good thing. More reliable petroleum delivery routes that bypass the Middle East reduce the ability of OPEC to artificially inflate oil prices. Oil will trade more like a regular commodity, and its price will see less fluctuations. In fact we have started to witness this over the last 3 months: Despite OPEC’s successive announcements of production cuts, oil prices have mostly ignored OPEC and remained steady in the $50 range. Three years ago, the same announcement would have meant $100 oil. Previously, huge jumps in oil prices were caused by inelasticity of supply. This will remain history as these massive builds in infrastructure take place.

Oil-Price.net

Related: Russia prepares for $40/barrel oil.

>