As Opec Loses Grip On Oil Price, These 3 Oil Stocks Just Got Even Hotter!

The Saudis have proved they can’t bring down the oil price...

Last weekend the great and the good met in Jeddah and arm-twisted Saudi Arabia into increasing its output.

They all believed this would bring the oil price down - how wrong they were.

This is not good news for the global economy. But it is fantastic news for three specific oil plays. I’m urging my readers buy into them now. I invite you to do so too.

Because as you’re about to see...

No matter what Opec does... oil’s going higher

Within days of Saudi Arabia’s last two output increases, the oil price spiked to a new all-time high...

Opec wanted the opposite outcome. It did not achieve its aim. The organisation now appears to be impotent.

The main cause of yesterday’s oil spike was US foreign policy. It upset the Libyans big time. This is important because Libya has Africa’s largest oil reserves.

In January, Congress passed a law allowing victims of state-sponsored terrorism to apply for court injunctions that would seize foreign assets in the US. This also applies to money from those governments held by American companies doing business with them.

War within the ‘Great Cartel’

The US has not exempted Libya from the law, despite lobbying by US oil firms that have tentatively moved into the North African nation.

They are, rightly, afraid about the consequence for their assets. The threat to cut off supplies by Libya is a direct reaction to this law. Also, Muammar al-Qaddafi did not support the output hikes in the first place.

Then there’s Venezuela...

The country did not send any representative to the meeting of oil consumers and producers held in Jeddah at the weekend. It opposed any output hikes by Saudi Arabia.

The country’s oil minister told Reuters: "We do not think it is necessary to increase production. The production that is being added now is aimed at building inventory."

So even Opec members appear to be at war over what to do!

Opec’s shrinking membership...

Indonesia recently withdrew from the cartel as its production slumped and it stopped being a net exporter.

In the 1990s, the country used to produce 1.5-1.6m barrels per day. It’s now dropped to under a million barrels a day.

So, internal politics between Opec members has caused a rift - it is no longer in control of the oil price.

Three stocks to buy before the next forward charge in the oil price

This sentiment was echoed by the head of one of Smart Commodities UK’s star portfolio oil plays.

Its Chief Executive said that Opec was no longer relevant when it came to the pricing of oil. He said the global economy was facing "a great surge in oil and gas prices" that will "end with prices at a radically new level."

The reason for this, as stated by BP chief executive Tony Hayward a few weeks ago, is a lack of investment in finding news reserves over the last few years.

Coupled with a crumbling dollar due to US economic mismanagement and geopolitical tensions in Nigeria, Venezuela, Iraq and the wider Middle East, this has lead to a unique - and unstoppable - charge forward for the oil price.

Right now we have three specific oil stocks perfectly positioned to shine the higher the oil prices goes.

You can access the portfolio here, and I urge you to load up now.

Regards,

Garry White
Editor
Smart Commodities UK P.S. If you enjoyed this article then sign up for Smart Commodities UK. It’s dedicated to searching out the investment trends that could provide our biggest profit opportunities for the next decade…

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As Opec Loses Grip On Oil Price, These 3 Oil Stocks Just Got Even Hotter!

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As Opec Loses Grip On Oil Price, These 3 Oil Stocks Just Got Even Hotter!