Okay, raise your hand if you thought Saudi Arabia would give into an oil-freeze deal that let Iran off the hook?
- Producers meeting in Qatar failed to agree on a plan to curb global supply, quashing the more optimistic tone that had prevailed for much of the past week.
Simply, the oil market is in crisis. Iran is bent on raising its daily output substantially, and every other oil economy will have to compete for market share that Iran wants. The Saudis are prepared to fight back by raising production another millions bpd, if market share starts slipping away, and it is.
- Iran Seals Deal to Export 700,000 Barrels of Oil Per Day to Europe
The above is not good news for OPEC and the other oil nations meeting in Doha about an oil freeze, but it is good news for the rest of the world, and, ultimately, the market. Just about 30 years ago, the Russians did not want to play ball with the Saudis … Oops!
The real problem, though, is, unlike 1985-86, oil is up against the gathering steam of renewable energy. If oil prices get too high, the renewable fire gets hotter and there is more steam. My thinking is green markets offer more opportunity than oil.
- When oil prices are in crisis, the green sector is moneymaker,
Finding longer-term moneymakers is the goal as oil fades and alternative energy sources assume more and more of the market that oil has, for now. In the end, portfolio profit is what matters.