OPEC Ouch

OPEC produces 32 million bbl/day of crude, slightly more than it produced 40 years ago. Then, that constituted half of global crude production, today it’s one-third. Moreover, the two largest producers, Saudi Arabia and Iran, are currently unable to cooperate, preventing unanimity making the cartel unworkable. Lastly, oil from fracking, while expensive, can come to market in just eight months in response to price spikes. OPEC will struggle for relevance.