If you're among the millions who've been deeply disappointed by OPEC's oil deal with Russia, then you're not alone. We just learned that OPEC's first deal with Russia only makes up a small percentage of all the world's oil production and reserves.
Before we go any further, let's talk about what OPEC is and what it's meant to do for the oil industry in general and for you in particular. Basically, OPEC is an organization of OPEC member nations who adhere to a set of policy decisions to provide a unified response to the over-supply of oil. These decisions are made at the highest levels, whether or not the decisions are agreed upon is immaterial.
This is why your professional oil analyst is sure to tell you that OPEC isn't going anywhere, whether you're looking for proof or not. OPEC is an important part of the oil market and the way the whole world has responded to this latest deal, the OPEC+ Deal Dwarfed by Crude Oil Demand Woes are pretty much self-explanatory.
The original OPEC oil cartel, meant to act as a collective company with common goals to raise prices on oil and stabilize the industry. However, because of all the other players now in the market, it's impossible for OPEC to be the unified force it once was. Consequently, OPEC is being "dwarfed by crude oil demand woes."
Now, if you ask your professional oil analyst or expert economist, they'll say the situation will get worse before it gets better and oil prices will eventually skyrocket, not just be ignored by OPEC members anymore. Obviously, this isn't something that anyone wants to hear, but we have to learn to accept things as they are, so let'review some of the key facts here:
First, it's no secret that oil is a commodity. It's an important commodity and as such, it has a price. That means we need to consider some of the current "oil forecasts" so we can understand what's going on and whether or not this could make the situation worse.
One problem with oil is that it's the easiest of all commodities to manipulate and by doing so, it's also the easiest to get people to believe in the stories. After all, when you say, "oil demand won't die," you are talking about people who have already died, but they just don't know it yet.
If you're trying to tell them, "Oil demand dies," you're most likely going to find yourself in hot water. If OPEC does what they claim they're going to do, oil prices will continue to climb, the oil industry will continue to struggle, and everybody involved will continue to suffer financially.
Another thing to keep in mind is that as the value of crude oil increases, so does the demand for oil. I'm not saying this will directly effect you in the short term, but it certainly will affect the price of oil in the long term. So, don't waste your time thinking that OPEC+ Deal Dwarfed by Crude Oil Demand Woes won't make a difference.
Even if there is a break-up between Russia and Iran, the situation won't change the level of oil and energy prices. But the break-up between Russia and Iran will cause a large number of American jobs to lose their jobs and because of this, more Americans will need to be retrained for non-traditional energy jobs. Think on this.
So, don't blame OPEC for the state of our own energy and the environment around us. Blame the Bush Administration for pushing through their energy policies and the Energy Bill that keeps on increasing the price of oil and makes it more difficult for the American people to survive. in this day and age.