April 26th, 2016
Some time ago, while I was advising on a refinery project in Ecuador, I explained here in Oil & Energy Investor how China’s oil policy was evolving.
The country’s objective used to be controlling oil production abroad, with the aim of transporting that oil back home.
But in 2013, Ecuador, the smallest of the OPEC producers, learned the hard way that this objective had changed. After running out of money, both Ecuador and its national oil company had to rely on loans from China to stay afloat.
In return, Beijing gained control over the revenue flow from Ecuadorian oil exports. The oil was allowed to flow anywhere, as long as the proceeds went back to China (as loan repayments).
Now, several of my sources are telling me that China is about to unleash the next step in its plan to control the world’s oil markets.
And this time, the targets can be found in an unsuspecting place. And in an unsuspecting fashion, too…
April 21st, 2016
Oil prices climbed to $44 a barrel today – a price not seen since last November. This big jump from yesterday’s settle of $42.63 comes as the market is on the cusp of another change in oil futures contracts.
You see, Friday marks the end of May contracts as the “near-month” barometer, with the switch to June contracts for WTI (West Texas Intermediate; the NYMEX benchmark) happening today.
Oil prices will now consolidate, although they are already within the $42-$45 a barrel WTI range I predicted for mid-June… and we are still only in April.
But now, for the first time in months, geopolitics is once again setting the energy agenda.
Five crises are emerging, and they will have an inordinate impact on energy prices going forward.
Instead, here’s what will happen… And how it will affect oil prices…