An article titled ‘OPEC Concludes Meeting, Arrives at a Stalemate‘ – reading time 2 minutes – reports that the OPEC meeting yesterday failed to reach agreement for the first time in 20 years.  At the meeting Saudi Arabia apparently proposed increasing quotas by 1.5 million barrels a day – presumably in large part to offset the current almost 90% reduction in Libyan oil output (reported in the same article).  That proposal was supported by Kuwait, Qatar, and the United Arab Emirates.  It was opposed by Libya, Angola, Ecuador, Algeria, Iran and Venezuala.

Reach your own conclusion, but it appears to me that what transpired largely was a ‘pro-America’ vote for, and an ‘anti-America’ vote against.  What this says about yet to be determined retail gasoline prices in America over the now ongoing ‘summer driving season’ remains to be seen.  That said, I would expect U.S. retail gasoline prices to be more likely to increase than decrease between now and September – with resultant increasing downward pressure on U.S. durable goods prices as U.S. consumers direct an increased % of their ‘spendable dollars‘ to keeping their vehicles ‘on the road’.  Moreover, if oil prices rise in the near term, that almost certainly will promote an increase in U.S. monthly net trade deficits over the next few months – see ‘How Screwed Up Is This’ following.

Possibly Related Posts:

• Keystone XL Pipeline?
• And So It Goes – New Arms Race?
• Strategic Petroleum Reserves
• Country Risk – A Very Big Deal!
• Oil Price Significance, Dollar v. Gold, Cash Flow v. Earnings, Poverty in America

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