This is going to be a quick one and relates to oil and the oil majors…
Oil is going nowhere quickly (as in here to stay for a long time) despite the green energy movement imo.
Green energy is expensive and despite the instagram generation virtuously espousing recycling clothes, they all love primark quick fashion.
And while the global green energy movement is a thoroughly admirable aspiration I don’t believe that either politicians, meople or children have any understanding of the hit that this will have to their finances or pocket money.
Furthermore, in my opinion, the only way to truly nail this problem is by someone finally cracking the nuclear fusion conundrum.
But, as always, I digress…
Clothes being made of oil; plastics being made of oil; tyres being made of oil; alot of everyday stuff being made of oil; that’s not my point here.
What’s piqued my interest is the recent, and very public, spat between the UAE and Saudi Arabia over baseline oil production levels (not to mention in detail the free zone trade rift which is another sign of tension).
Normally when one party spits the dummy with the other we usually only hear about it after the problem has been resolved behind closed doors.
The UAE has (in my opinion) always kowtowed to Saudi Arabia; but it’s always been the more secular oriented power having Dubai as its significant historical pre-oil trading hub.
And recently the UAE has been making up with Israel.
Certainly it seems to be coming into its own (and making its own way) as far as global (secular) power pretensions are concerned.
I suspect that there is a significant chance that the UAE will (despite what all the market pundits are saying right now today) give OPEC+ a taste of OPEC- shortly before they all make up.
After all the UAE has to test its new production baseline that it’s invested so heavily in recently….. and fire a warning shot to the Russians and Saudis.
And always remember that we are dealing with the huge, but very fragile, egos of only three men here.
Good on the UAE I say!
Oil prices are going to drop significantly in the next few weeks when that happens.
And that’s without Iran making up with the USA over its nuclear enrichment antics!
I might be completely wrong; but you heard it here first if I am right.