Excessive sales demand even more excessive sales to keep their economies afloat.
These countries will remain rentier states (living off the surplus of natural materials without increasing the value of the land itself), and that cycle will make matters even more contentious as we move forward.
And then there is the prospect of an agreement between Iran and the West, opening up competition from Tehran, and the Iraqi intent to increase exports despite an expanding civil war. Iran and Iraq are also OPEC members, but have been unable to reach a monthly quota level (Iran) or have not had one for over a decade (Iraq). Changes here will destabilize what is left of the OPEC balance.
That means two things. First, the genuine influence OPEC has on oil prices will depend on its ability to get its own house in order. Second, the real battle within the cartel has not even started yet.
But the battle with Russia has already begun.
We’re in the midst of the greatest investing boom in almost 60 years. And rest assured – this boom is not about to end anytime soon. You see, the flattening of the world continues to spawn new markets worth trillions of dollars; new customers that measure in the billions; an insatiable global demand for basic resources that’s growing exponentially; and a technological revolution even in the most distant markets on the planet.And Money Morning is here to help investors profit handsomely on this seismic shift in the global economy. In fact, we believe this is where the only real fortunes will be made in the months and years to come.