OPEC Cheaters Repent, Oil Prices Set to Soar
Iraq, the perennial OPEC scofflaw, has seen the light and is making amends for its past transgressions. The country has announced compensation cuts for exceeding its OPEC quota, proving that it is serious about adhering to the production limits set by the cartel. This move, along with similar actions by Kazakhstan and the Russian Federation, should alleviate concerns about OPEC tapering off production cuts.
Meanwhile, Vice President Kamala Harris has backtracked on her previous call for a fracking ban, signaling a shift in her energy policy stance. Despite her past support for the ‘Green New Deal,’ Harris now claims she never intended to ban fracking and has not done so during her tenure as Vice President. This move has raised questions about her consistency and commitment to her values.
On the global stage, the loss of Libyan oil production due to political unrest is putting pressure on oil prices. With Libyan oil output down by 700,000 barrels per day, the market is hoping for a swift resolution to the political standoff to prevent a Labor Day price spike. The situation in Libya remains precarious, with rival armed factions mobilizing in response to recent political developments.
Overall, the combination of OPEC compliance, shifting energy policies, and geopolitical tensions is likely to push oil prices towards the upper end of their trading range. With supply tightening and demand remaining strong, a major upside breakout could be on the horizon. Investors should keep a close eye on developments in Iraq, Libya, and other key oil-producing regions to capitalize on potential price movements in the near future.