01 December 2014

Is OPEC still a major player? | Infographic

Saxo Capital Markets’ latest infographic charts the fluctuating fortunes of the Organisation of Petroleum Exporting Countries (OPEC) and the group’s unstable role in today’s oil markets.

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​Saxo Capital Markets’ latest infographic charts the fluctuating fortunes of the Organisation of Petroleum Exporting Countries (OPEC) and the group’s unstable role in today’s oil markets.

Established in the 1960s, OPEC largely consists of oil exporting Middle Eastern states, but has since has filtered in further members from Africa and South America; OPEC now accounts for approximately 40% of the world’s crude oil production.

Yet, given current oversupply and a resultant slump in global prices, some OPEC states will need Brent Crude to trade at far beyond $100 a barrel to balance national budgets, while Saudi Arabia and the other Gulf states would like to maintain output quota at the present rate. At a time when the US shale gas revolution has diminished the need for OPEC energy exports, coupled with global economic slowdown, a sharp decline in oil prices has raised questions about OPEC’s future.

Market volatility hasn’t reached the point when prospective investors ought to bring their own bucket and measuring stick to the oil fields, but commodities traders will monitor global reserve levels and can track shifts in crude oil inventories, plus possible fracking regulation in the US. This infographic illustrates the scale of reserves at the Oklahoma storage hub, revealing a growing glut in crude.

What does this mean for traders? To some degree, investor interest in oil may predicate on the future of OPEC and the group’s role in market volatility. Register with Saxo to place a trade on oil and other energy commodities.



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The value of your investments can go down as well as up.
Losses can exceed deposits on margin products. Please ensure you understand the risks.