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A fire has broken out at an oil refinery in Russias Bashkortostan and firefighting is underway, with the production site suffering minor damage, the regional governor said.British retailer Sainsburys confirmed it is in discussions to sell its Argos subsidiary to JD.com (JD.O).The Cyberspace Administration of China is soliciting public opinions on the "Regulations on Promoting and Standardizing the Application of Electronic Documents (Draft for Comments)".On September 13th, Trump released a letter to all NATO nations and the world. He stated, "I am ready to impose significant sanctions on Russia when all NATO nations agree and begin taking the same actions, and all NATO nations stop buying Russian oil." As you know, NATOs commitment to "winning this war" is far from 100%, yet some countries are still buying Russian oil, which is truly shocking! This significantly weakens their negotiating position and leverage with Russia. This is not Trumps war (if I were president, this war would never have happened!), but Biden and Zelenskys war. My sole purpose is to help end this war and save tens of thousands of Russian and Ukrainian lives. If NATO does what I say, this war will end quickly, and all these lives will be saved!On September 13, Russian Permanent Representative to the United Nations Vasily Nebenzya revealed on the 12th that Poland acknowledged that a drone that recently entered Polish airspace may have originated from Ukrainian territory, stating that it was no secret that Ukraine "has been attempting to expand the geographical scope of the Russia-Ukraine conflict." This statement further complicates the Polish version of the Russian drones entry into Polish airspace. Several European and American experts, scholars, and politicians speculated that there may be a hidden story behind this incident.

OPEC Departures - Those Who Escaped (actually four)

Alina Haynes

Nov 04, 2022 17:41

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Beginning this week, we will investigate OPEC dropouts, the worldwide group intended to control oil prices and protect its members' energy interests - primarily against private oil corporations. Ecuador, Indonesia, Gabon, and Qatar are the four OPEC members who have suspended or cancelled their memberships since the organization's inception in 1960.

 

Even though it is an energy-related institution, its impact extends to both the market and geopolitics. The most obvious example would be the energy crisis of the 1970s, which was created by a crude oil embargo imposed on the west as punishment for its backing of Israel. Inadvertently, this promotes energy security for western nations, driving the United States to become the world's greatest oil producer.

 

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How Powerful Is OPEC?

In an effort to stabilize oil prices and protect national interests, OPEC has reduced daily crude oil output quotas (not actual production) by two million barrels. Since the October announcement, oil bulls have regained their power. WTI oil futures were trading at $88.59 per barrel as of 2 November, and Brent oil futures were trading at 94.72 per barrel - an increase of nearly $10 in less than a month.

 

By controlling around 40% of world oil output and 80% of global oil reserves, the Organization of Petroleum Exporting Countries (OPEC) has been able to influence the market and even international relations. If so, why would its members choose to quit, especially in the twenty-first century, when many nations are undertaking energy transformation and diversification and (public and private) oil producers are gaining less positive public images and becoming less sustainable?

Why Depart? 

OPEC acts in a manner comparable to that of a labor union, earning bargaining leverage and financial gains by collective action/stance. But when the costs outweigh the benefits, it makes sense to depart. In this instance, Ecuador claimed fiscal issues as the reason for its second official withdrawal from OPEC. The country's economy has struggled for decades. It claimed that the OPEC production quota and the membership fee of two million dollars created major financial restraints.

 

As the Russian invasion of Ukraine continued, the market opportunity given to oil-producing nations by rising energy costs became more alluring. However, OPEC members were required to adhere to the output quota, and oil-dependent nations were placed in a disadvantageous situation. Low-producing nations, such as Ecuador, were eclipsed by major producers, such as Saudi Arabia, due to the disparity in output levels.

 

Complex political subtleties among OPEC members have also given rise to discontent. The departures of Qatar and Indonesia can be partially ascribed to geopolitical issues, especially those that occur beyond their borders. Stay tuned as we discover more about the oil-producing nations in the periphery.