{"id":36946,"date":"2018-08-23T06:46:03","date_gmt":"2018-08-23T11:46:03","guid":{"rendered":"http:\/\/olduvai.ca\/?p=36946"},"modified":"2018-08-23T06:46:03","modified_gmt":"2018-08-23T11:46:03","slug":"why-the-saudis-are-still-dominating-oil-markets","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=36946","title":{"rendered":"Why The Saudis Are Still Dominating Oil Markets"},"content":{"rendered":"

Why The Saudis Are Still Dominating Oil Markets<\/a><\/h3>\n\"Bab<\/picture>\n
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Saudi Arabia is still clearly in control of the oil market.<\/p>\n

The narrative that decisively took hold over the oil market in August was one of cracks in emerging market demand, concerns over the health of the global economy<\/a> and fears over the fallout from the U.S.-China trade war. Turkey\u2019s currency crisis<\/a> set off a slide in emerging market currencies, which will likely undercut demand this year. The IMF warned earlier this summer that the downside risks to the economy were growing, a rather prescient prediction. On the supply side of the equation, outages from Iran loom large.<\/p>\n

But when it comes to physical barrels on the market, Saudi Arabia is still in the driver\u2019s seat. \u201cWhile fears of trade wars will continue to influence sentiment and shape price outcomes, it is the recent shifts in OPEC, and particularly its dominant player Saudi Arabia\u2019s, output policy which has had the biggest impact on physical balances, prices and the term structure to date,\u201d The Oxford Institute for Energy Studies (OIES) wrote in a new report<\/a>.<\/p>\n

For the first few months of this year, Saudi Arabia maintained that the oil market was moving towards \u201crebalancing\u201d with inventories in steady decline, but that there was more work to do. Saudi officials repeatedly stuck with the line that the OPEC+ agreement would not be altered before the end of the year and that they would continue to focus on bringing down inventories.<\/p>\n

But the Trump administration\u2019s withdrawal from the Iran nuclear deal and the return of sanctions raised fears of a huge disruption in Iranian supply. Suddenly, the market looked very tight. Coming just a few weeks before the June OPEC+ meeting, the U.S.\u2019 policy change was decisive.<\/p>\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Why The Saudis Are Still Dominating Oil Markets Saudi Arabia is still clearly in control of the oil market. The narrative that decisively took hold over the oil market in August was one of cracks in emerging market demand, concerns over the health of the global economy and fears over the fallout from the U.S.-China […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[3],"tags":[2904,441,6010,2245,5332,600,701,805,4311,827],"class_list":["post-36946","post","type-post","status-publish","format-standard","hentry","category-energy-2","tag-energy-market","tag-iran","tag-nick-cunningham","tag-oil-market","tag-oilprice-com","tag-opec","tag-saudi-arabia","tag-trade","tag-trade-wars","tag-united-states"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/36946","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=36946"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/36946\/revisions"}],"predecessor-version":[{"id":36947,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/36946\/revisions\/36947"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=36946"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=36946"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=36946"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}