Neither OPEC nor the Internet want to be governed by the outside dynamics that have lately been orchestrated by outsiders.
The "U.S. frackers" pushed at OPEC and now OPEC is holding a steady course of crude oil pumping, which is pushing back at the U.S. frackers.
In the previous post of this series we wondered about the intentions and motivations of OPEC for not cutting its oil production in the face of an oil glut.
(What we did know when we asked that question is that their tactics and strategies have nothing to do with solving the problems that form the pillars of the global warming paradox which their crude oil drug peddling is causing.)
But we do know more about OPEC's intentions, led by Saudi Arabia, based on their own statements made at the recent OPEC gathering.
A gathering that had some observers expecting a drop in crude oil production, along with some OPEC members urging a drop in production as a tactic to increase oil prices.
The cause of the problem of dropping prices is an oil glut ostensibly caused by the U.S.
|Oilah Akbar! or a Judas Kiss?|
Saudi Arabia's oil minister told fellow OPEC members they must combat the U.S. shale oil boom, arguing against cutting crude output in order to depress prices and undermine the profitability of North American producers.(Naimi Declares Price War on U.S. Shale Oil). How far this will go is anybody's guess, but those who follow the money say the price is too tight for a lot of the "tight oil plays" out there.
Others note that there is also some "domino business" (a.k.a. unintended consequence) taking place:
Oil prices that reached a five-year low on Friday are starting to take a bite out of profits at TD Bank and are raising concerns for the rest of the country's top lenders.(Oil Price Drop Threatens Bank Revenues). How long the "steady as she goes" OPEC production strategy continues will determine most of the outcome.
Canada's biggest banks earn up to 20 per cent of their revenues through providing investment and corporate banking services, with oil and gas companies an important part of that client base.
That is, it will determine the damages to the U.S. fracking business, and perhaps whether the citizens will be required to bail the frackers out (or their banksters).
The previous post in this series is here.