The “New Oil Order” by Jeff Currie, Global Head of Commodities Research at Goldman Sachs.
The new oil order is the term which has been invented to describe the transition the oil market is going through. It is best described through 3 different areas:
Production is easier to manage. You can increase, decrease production in function of demand very easily. It wasn’t the case before!
The demand has changed tremendously with the US approaching energy independence. The US represent the “base-load” demand.
3. Market structure
OPEC has lost most of its pricing power because of a very flat supply curve.