Geopolitical Grind

By: Matt Reese / April 24, 2018

The world energy markets are watching intently as the Trump Administration has until May 12th to decide whether or not to restore U.S. economic sanctions on Iran.  Will the outcome alone be the tipping point of the 16% rally in WTI this year?  The answer in short, is no.

Oil Derek

Factors geopolitical analysts are viewing include:

  • Venezuela
    • Venezuela President Nicolas Maduro sacked the head of PDVSA and handed over control to the military in order to keep the armed forces on his side. 
    • Accelerated rate of decline in Venezuela’s oil production due to workers quitting at the state-owned PDVSA over unsafe working conditions.
    • Workers are upset over their pay due to the hyperinflation of Venezuela’s currency.
  • Libya
    • The incapacitation of General Khalifa Haftar of the Libyan National Army due to a stroke.
    • The LNA is the main oil and gas power broker in the country that controls the “oil crescent” in the Gulf of Sirte and internal instability within the LNA due to lack of succession could renew a power struggle within Libya.
  • OPEC
    • OPEC is posting its fifth consecutive record breaking month concerning production cuts as Saudi Aramco prepares for its IPO later this year.
    • OPEC’s constant struggle with Non OPEC countries regarding the global supply structure.

 

Events in every corner of the globe impact the price of fuel such as a tweet, protests, military coup de tats, or weather disruption can cause a domino effect felt on the world stage. As tornado season approaches in the Midwest and military instability rages on in the Middle East, traders and consumers can only speculate on what the future may hold.

 

Tornado

 

https://oilprice.com/Energy/Oil-Prices/The-One-Man-Who-Could-Send-Oil-To-100.html

 

https://oilprice.com/Energy/Oil-Prices/Is-Saudi-Arabia-Sowing-The-Seeds-Of-Another-Oil-Price-Crash.html

 

https://www.bloomberg.com/news/articles/2018-04-19/oil-market-faces-tense-wait-as-iran-sanctions-too-close-to-call

 

https://oilprice.com/Energy/Energy-General/Venezuelan-Oil-Enters-The-Disaster-Zone.html

 

 

https://weather.com/storms/tornado/news/2018-03-27-april-may-june-tornadoes-peak-months


Categories: Industry Update, geopolitical, Venezuela, Iran, OPEC, Libya


Matt Reese

Written by

Matt Reese

With a combined 10 years of customer service and sales experience, I am a detailed and efficient person who provides integrity and exemplary customer service to every business relationship. Consulting, cultivating and caring are qualities that my customers appreciate most.


Guttman Energy Daily Market Update Disclaimer – The information contained in this market update is derived from sources believed to be reliable; however this update could include technical inaccuracies or typographical errors and Guttman Energy does not guarantee the accuracy, completeness or reliability of this update. FURTHERMORE, THIS UPDATE IS PROVIDED "AS IS," WHERE IS, WITH ALL FAULTS AND WITHOUT ANY WARRANTY OR CONDITION OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY. GUTTMAN ENERGY ALSO SPECIFICALLY DISCLAIMS ALL EXPRESS AND IMPLIED WARRANTIES. YOU USE THIS UPDATE AT YOUR SOLE RISK. This update and any view or comment expressed herein are provided for informational purposes only and should not be interpreted in any way as recommendation or inducement to buy or sell products, commodity futures or options contracts.


Comments

Subscribe to our blog

Price Feed

Stay up-to-date on current fuel prices and market trends with our NYMEX price feed (15 minute delay to the live market).

© 2018 Market data provided and hosted by Barchart Market Data Solutions. Fundamental company data provided by Morningstar and Zacks Investment Research. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see disclaimer.

Categories

Contact Us