The Opec oil cartel no longer exists in any meaningful sense and crude prices will slump to $50 a barrel over the coming months as market forces shake out the weakest producers, Bank of America has warned.
Revolutionary changes sweeping the world’s energy industry will drive down the price of liquefied natural gas (LNG), creating a “multi-year” glut and a much cheaper source of gas for Europe.
Francisco Blanch, the bank’s commodity chief, said Opec is “effectively dissolved” after it failed to stabilize prices at its last meeting. “The consequences are profound and long-lasting,“ he said.
The only ones who seem to benefit from cheap energy are actual consumers. Why they — we! — aren’t everyone’s primary concern when talking about energy prices, I have no idea.
I’m kidding, of course. I mean, somebody has to pay for all the Saudi palaces and Russian invasions and “green energy” boondoggles — and it certainly isn’t going to be the Saudi princes or Russian adventurers or politically-connected Democrats.