US legislation aimed at reining in OPEC's power over oil markets is a 'big concern,' Barclays says

[SuvarnaTeja]

US legislation aimed at reining in OPEC's power over oil markets is a 'big concern,' Barclays says

• Washington is reportedly considering legal claims against OPEC for allegedly manipulating the energy market.
• If passed, the proposed No Oil Producing and Exporting Cartels Act — more commonly referred to as NOPEC — could revoke the sovereign immunity that has long shielded members of the Middle East-dominated group from U.S. legal action.
• "This is a big concern," Barclays' Michael Cohen told CNBC's "Squawk Box Europe" on Tuesday.

Sam Meredith | @smeredith19
Published 15 Hours AgoCNBC.com



Russia has less appetite for oil supply cuts than Saudi Arabia: Expert 17 Hours Ago | 06:04
The risk of U.S. legal action against OPEC could prompt more members of the influential oil cartel to sever ties with the group, according to the head of energy markets research at Barclays.

Washington is reportedly considering legal claims against OPEC for allegedly manipulating the energy market.

If passed, the proposed No Oil Producing and Exporting Cartels Act — more commonly referred to as NOPEC — could revoke the sovereign immunity that has long shielded members of the Middle East-dominated group from U.S. legal action.


"This is a big concern," Barclays' Michael Cohen told CNBC's "Squawk Box Europe" on Tuesday.

"I think it's something that could very easily weigh on the messaging of this meeting that is going to happen on Thursday and Friday," he added.

What is NOPEC?
The NOPEC bill would amend U.S. antitrust laws to allow OPEC members to be sued for collusion. OPEC controls production from member nations by setting output targets.

Historically, former U.S. presidents have opposed NOPEC legislation. But, some external observers say President Donald Trump could give the bill fresh momentum after repeatedly attacking the group for keeping oil prices "artificially very high."

Heinz-Peter Bader | Reuters
Saudi Arabia's Oil Minister Khalid al-Falih listens during a news conference after an OPEC meeting in Vienna, Austria, November 30, 2017.
The president is publicly in favor of low fuel prices and has urged OPEC and non-OPEC producers not to cut production later this week.

"It is certainly possible that a country that is looking to enhance or burnish its ties to the United States may look at the NOPEC legislation and say: 'Well, we don't want to be a part of this organization anymore,'" Cohen said.

OPEC were not immediately available for comment when contacted by CNBC Tuesday morning.

Qatar quits
OPEC and non-OPEC members are due to meet in Vienna, Austria, on Thursday, with the energy market widely expecting the alliance to orchestrate a fresh round of supply cuts.

Ahead of the much-anticipated meeting, Qatar abruptly announcedMonday that it would withdraw from the 15-member group from January 1, ending a membership that has stood for more than a half-century.

In explaining the small Gulf country's decision to leave OPEC, Qatar's Energy Minister Saad al-Kaabi said Monday that Doha did not have "great potential" in oil and so it would focus its efforts on gas production instead.

While Qatar is one of OPEC's smallest crude producers, especially when compared to the likes of de facto leader Saudi Arabia, it is one of the world's largest producers of liquefied natural gas (LNG).



Qatar: The little country causing some big headaches in Trump World 5:53 PM ET Thu, 13 Sept 2018 | 05:54
Qatar's Al-Kaabi denied the decision was linked to the 18-month political and economic boycott of Doha.

Since June 2017, OPEC kingpin Saudi Arabia — along with three other Arab states — has cut trade and transport ties with Qatar, accusing the country of supporting terrorism and its regional rival, Iran. Qatar denies the claims, saying the boycott hampers its national sovereignty.

"Oil production of around 600,000 barrels per day might seem negligible (but) its decision to leave OPEC might weaken the organization's influence in managing global oil supply," Tamas Varga, senior analyst at PVM Oil Associates, said in a research note published Tuesday.



Sam MeredithDigital Reporter, CNBC.com

https://www.cnbc.com/2018/12/04/us-...pec-is-a-big-concern-barclays-cohen-says.html

 

[SuvarnaTeja]

@kahonapyarhai @Jyotish Kailashkumar @Hindustani78

 

[FuturePAF]

Oil was the one thing the Gulf Arab Countries had to get the world to listen to their demands. Looks like its divide and conquer time. Iran just got sanctions reimposed today, and Qatar is looking for the exit. Diversification is the name of the game. The Norwegians started their sovereign wealth fund ~30 years ago from their oil revenue, and now have $1-1.5 Trillion invested in the world stock markets, and Norway only has a population of 5 Million. The profits alone on their conservatively invested sovereign wealth fund was around $140 billion in 2017 alone.

The game is not over for the OPEC Countries but they have to give up pie in the sky ideas like NEOM and $500 billion new showcase cities. IF they start special economic zones in the 100-200 most productive cities in the developing world, and invest in the industries being built up there, they can catch the realignment of the world to their favor. Growth and the rapid increase in productivity a small investment of a few billion in each of these cities will do more than investing in the overdeveloped western nations. It will also buy them friends. Friends who with the investment, can afford to buy more of their oil.....and this will keep oil process high enough to save them.

Lets see how OPEC responds. They need to think out of the barrel on this one.

 

[SuvarnaTeja]

Oil was the one thing the Gulf Arab Countries had to get the world to listen to their demands. Looks like its divide and conquer time. Iran just got sanctions reimposed today, and Qatar is looking for the exit. Diversification is the name of the game. The Norwegians started their sovereign wealth fund ~30 years ago from their oil revenue, and now have $1-1.5 Trillion invested in the world stock markets, and Norway only has a population of 5 Million. The profits alone on their conservatively invested sovereign wealth fund was around $140 billion.

The game is not over for the OPEC Countries but they have to give up pie in the sky ideas like NEOM and $500 billion new showcase cities. IF they start special economic zones in the 100-200 most productive cities in the developing world, and invest in the industries being built up there, they can catch the realignment of the world to their favor. Growth and the rapid increase in productivity a small investment of a few billion in each of these cities will do more than investing in the overdeveloped western nations. It will also buy them friends. Friends who with the investment, can afford to buy more of their oil.....and this will keep oil process high enough to save them.

Lets see how OPEC responds. They need to think out of the barrel on this one.

What can Qatar do when the neighbors try to put restrictions.

 

[FuturePAF]

What can Qatar do when the neighbors try to put restrictions.

they are taking their 600,000 barrels of oil out of the Opec column to make their point, and should invest in developing nations that are rising powers. Turkey is one place they have started and that is a good country to invest in.

 

[Kailash Kumar]

@kahonapyarhai @Jyotish Kailashkumar @Hindustani78

Why did you tag me?

I am just a posting bot .

I have no expertise on this subject (or any other subject for that matter) .

On topic:
Of course the United States does not want this cartel to be powerful.
The US wants to control the world.
And OPEC is able to resist their control.
Therefore it needs to be divided, weakened and destroyed.
Then the US can come and control the oil producing countries which used to OPEC members.

US Imperialism 101.

 

[SuvarnaTeja]

Why did you tag me?

Because I like your threads.

I am just a posting bot .

Some bots do speak.

I have no expertise on this subject (or any other subject for that matter) .

I know

On topic:
Of course the United States does not want this cartel to be powerful.
The US wants to control the world.
And OPEC is able to resist their control.
Therefore it needs to be divided, weakened and destroyed.
Then the US can come and control the oil producing countries which used to OPEC members.

US Imperialism 101.

Was't OPEC created by the US to support the petro dollar?