Filling my car at the weekend, I was reminded of a time when I worked in the energy sector. There was a particular kind of software called ETRM (Energy Trading Risk Management) designed to predict and offset the effect of forward prices on most forms of energy.
Now we see Saudi Arabia raising January official selling prices for all crude grades sold to Asia and the United States by up to 80 cents from the previous month.
This, despite a decision last week by the Organization of the Petroleum Exporting Countries and their allies including Russia (OPEC+) to continue increasing supplies by 400,000 barrels per day in January.
Add the diminishing prospects of a rise in Iranian oil exports after indirect U.S.-Iranian talks on saving the Iranian nuclear deal broke off.
OPEC+ has maintained that the decision was purely based on market fundamentals although it is difficult not to see the hand of the U.S. at play, particularly given the concurrent visit of a U.S. delegation to Saudi Arabia.
Notice also Russia’s total output has failed to rise as its major producers say they are facing technical difficulties.
It has the components of a good novel, resulting in squeezes on oil, petrol and home energy.
I need a third theme in my Corrupt novel series. Corrupt, Sleaze and maybe Squeeze?
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