Conflicts at the OPEC meeting

5/6/2016, 8:51 PM (Source: Superfund)

Last week was marked by price reductions on the oil market. Prices of raw materials slumped of a worked in late April of this year's highs. Downward rebound was helped by force of the U.S. dollar, as well as the closing of long positions by institutional investors, they previously were enthusiastic. Additionally, the supply side supports the continuing oversupply of oil on the global market.

For production of this raw material in large volumes, primarily responsible are the members of the Organization of the Petroleum Exporting Countries (OPEC). Saudi Arabia currently produces crude oil at almost record levels, and Iraq and Iran significantly increased the production of this raw material in recent months. The other countries of the cartel are also dominated by trends related to the production of large quantities of oil -  in order to maintain its market share - despite the fact that the low prices of raw materials hit the economies of most of them.

However, last week pointed out that the impact of the OPEC on the global price of oil is getting smaller, mainly due to the lack of unified position of the cartel on long-term policy of the OPEC. Recently, each OPEC country seemed to be looking first and foremost for their own interests, and at a meeting of representatives of the OPEC countries, which was held this week, some of them said quite loudly that the "OPEC is over," and in the global oil market counts first and foremost the largest country in the cartel, Saudi Arabia.