CLOUDS ANNOUNCING STORMS

CLOUDS ANNOUNCING STORMS

in the international economic context

Hugo Adan. Sept 29-16

On Monday oil prices went up 3% in relation to prices the week before. It is expected that this “trend-up” will continue until Nov when the deal between RU-OPEC (including Iran & Saudis. Saudis agree to reduce their production to 500,000 barrels a day –around 50% the current rate). Why they did it?.. is unclear yet.  The FACT is that all other OPEC members agree to limit their oil production to 32,5 million of barrels per day.

The uncertainty regarding Saudis policy created a big cloud in the sky: If oil prices go up too much after Nov .. commodity prices will go too.. and the whole inflation-riddle will come back.

How to explain Saudis policy of reducing & setting limits to their  oil production?. If this is related to politics –as stated yesterday by some analysts (meaning: Saudis’ retaliation to our nation right to sue them). If this is the case, then they will retract as the dynamic of politics go fine among NATO allies. If this happens the world will confront again the Saudis’ economic terrorism. ..

In such a case, some political analyst wonder why no to take the Saudi Royalty out of the geo-political table once and for all, they don’t need more money. Why no to create something similar to a “state papacy” to administer their oil without its royalty. So, their oil could be transferred to either the UNSC and/or special committee of developed countries…

OR  to transferred the control of Saudi oil to OPEC, but without Saudi's royalty.  Either one will be used to pay a “fair price” for Saudis’ war crimes and crimes against humanity committed in the US Set 11-01 act of terrorism and their terrorism in Yemen, etc.. and to support the victims of ISIS-al Nustra terrorism supported by the Saudis in the ME.

The FACT is that Saudi-royalty is causing too much economic and political trouble world-wide. This is the perfect time to take them out of the geo-political table, and confiscate their riches  and place them in jail, concluded one analyst.  

However, there is a chance that prices stabilize relatively up, but not too much,  as it was expected by RU-OPEC deal to limit extraction to 32,5 millin per day (agreement that included Saudis and Iran, and benefit all OPEC small producers like VEN, BRA, Nigeria and others in OPEC).

But..  if the Saudis retract from this deal and decide not to limit their over-production, then we will have prices down again.. a reality nothing pleasant to US investor in oil & gas. 

This trend will coincide with speculators called “Investors”  of the group Golman Sachs who are “predicting” another fall of prices -not derived from political factors- but for “economic” ones. 

Check: LAS RAZONES POR LAS QUE LOS PRECIOS DEL PETRÓLEO SEGUIRÁN BAJANDO published in RT https://actualidad.rt.com/actualidad/220000-precios-petroleo-tregua-conflicto-africa

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… Check this other news too…

Goldman Says OPEC Deal May Add Up To $10 To Price Of Oil, Two Days After Cutting Oil Price Target By $7

Goldman has done it again. Two days after the central banker-incubator cut its year end price target from $50 to $43, and followed the next day by a report in which it said that not even an OPEC deal would stop oil going lower, overnight the same analyst said that the OPEC agreement will "likely provide support to prices up, at least in the short term" and added that the announced production quota should boost the price of oil by $7/bbl - $10/bbl.

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