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OPEC’s Influence On The Oil Markets

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OPEC oil markets

OPEC’s Influence On The Oil Markets

Over the years, we have seen OPEC assert its dominance in the markets. In the short term, as prices recovered in the past month, it is now evident that OPEC has the tools necessary to adjust the markets. Albeit U.S shale remains the albatross on their neck, OPEC is still the leader of the oil markets. In April, when US President, Donald Trump called on Saudi and Russia to end the price war and help the markets recover, it was conceivable that Shale’s influence on the market was waning. Several companies felt the effect of the oil price crash, and Texas, the home of U.S energy had increased levels of unemployment.

OPEC has been regarded as a cartel and has acted as a cartel of late. Last week, for May, the Joint Ministerial Monitoring Committee (JMMC) pegged its compliance with production cuts at 87%. OPEC also restated the essence for all participating countries to reach 100% of their pledged cuts and make up for any previous deficits in quotas for July, August, and September.

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Iraq, Kazakhstan, Angola, and Nigeria prompted into action and ensured they fulfilled their parts of the cuts. Iraq, Nigeria and Kazakhstan have already submitted compensation schedules as the deadline for other underperforming members to submit was on the 22nd of June 2020. This sort of discipline is needed to offer support to prices, which translated into the recovery of the market.

The successful managing of the oil markets during this coronavirus era can be attributed to OPEC+, albeit they were responsible for the market plummeting months ago. In history, OPEC has always found a way to influence the markets during eventful periods. For example, the 1973 oil shock, the fall of the Soviet Union in 1991, and the Asian Financial Crisis all provided opportunities for OPEC to prove their mettle.

The Oil Cartel created in the 1960s allied with Russia and other nations, which results in the term “OPEC+.” According to Investopedia, this formation means they control over 50% of global supplies and 90% of proven reserves. What makes OPEC strong is the absence of alternatives to oil, and the de-facto leader Saudi Arabia, has the world’s lowest cost of production per barrel. The latter gives Saudi Arabia leverage to survive a crash in prices and creates some invincibility, which it leverages to dictate the market.

Conclusively, we have seen prices prop up and U.S shale suffering, OPEC+ seems like the influential deciding factor in the oil markets. It might lose its foothold in the future, but for now, the cartel calls the shots.

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Foreign

Spain Records More Than One Million Cases of COVID-19

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Spain has recorded more than one million coronavirus cases, becoming the first western European country to Have that landmark figure.

On Wednesday, the country reported 16,973 infections and 156 deaths in the previous 24 hours.

Since its first diagnosed case on 31 January, Spain has now recorded a total of 1,005,295 infections.

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It is the sixth nation worldwide to report one million cases after the US, India, Brazil, Russia and Argentina.

Europe has seen a surge in new infections over the last few months, forcing governments to bring in strict new regulations to try and control outbreaks and ensure hospitals do not become overwhelmed.

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10,000 Protesters Defy Thai Crackdown After Emergency Decree

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10,000 Thai protesters gathered Thursday in defiance of a sweeping crackdown after authorities moved to crush months of pro-democracy demonstrations by imposing emergency powers and rounding up leading activists.

Protesters chanted “Prayut get out!” and “free our friends!” as they confronted police at Ratchaprasong, a busy junction in central Bangkok, despite a new decree that bans gatherings of more than four people — aimed at quelling student-led demonstrations.

The Government of Prime minister Prayut Chan-o-Cha, a former army chief who initially took power in a 2014 coup, has been the target of the protesters, but they have also taken aim at Thailand’s unassailable monarchy.

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As night fell, Thai protesters waved their lit-up mobile phones in the air.

Thousands sat on plastic sheets on the road snacking on street food while scores more watched from overhead walkways. Many said they would return Friday evening.

After the emergency measures were announced early Thursday, riot police dispersed hundreds of protesters who camped overnight outside the prime minister’s office.

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Entertainment

John Legend and Wife Announce Miscarriage on Instagram

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: John Legend and Wife Chrissy Teigen Announce Miscarriage on Instagram

American singer John Legend and his wife, Chrissy Teigen have announced the miscarriage of their baby.

Teigen took to her Instagram page on Thursday, October 1, 2020, where she penned a heartfelt note about the demise of their baby.

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“We are shocked and in the kind of deep pain you only hear about, the kind of pain we’ve never felt before. We were never able to stop the bleeding and give our baby the fluids he needed, despite bags and bags of blood transfusions. It just wasn’t enough,” she wrote.

She went on to send a message to her baby, apologizing for all the complications surrounding his death.

Teigen and John Legend announced back in August that they were expecting their third child.

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COVID-19 PREVENTION

infectious diseases in your community. It is very important to wash your hand frequently with soap under running water.

COVID-19 IS REAL

#COVID19NIGERIA Situation Report

The #COVID19Nigeria situation report for 21st July, 2020 has been published. Our daily reports provide a summary of the epidemiological situation & response activities in Nigeria

The #COVID19Nigeria situation report for 21st July, 2020 has been published. Our daily reports provide a summary of the epidemiological situation & response activities in Nigeria

@Africa CDC

The African Union and Africa CDC will virtually rollout the Partnership to Accelerate COVID-19 Testing (PACT) in Africa tomorrow 4 June, 2020 at 11.00 am Eastern Africa Time.

The African Union and Africa CDC will virtually rollout the Partnership to Accelerate COVID-19 Testing (PACT) in Africa tomorrow 4 June, 2020 at 11.00 am Eastern Africa Time.

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Gallant Officer
"Also found worthy of honour was Bashir Abubakar, an Asst Comptroller-General of Customs, who rejected a bribe of $412,000 per container offered him by drug traffickers seeking to bring 40 containers of Tramadol into Nigeria. A fine example of incorruptibility, worthy of emulation"

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