Why to Follow OPEC Decisions If You Trade Oil

 

Oil offers many trading opportunities, and smart online investors like to compare the trading conditions offered by various brokers, such as UFX, to take advantage of movements in the price of this vital commodity. In an often-volatile market, one thing that all oil traders agree on is that the OPEC cartel has an out sized influence on value of crude oil.

What is OPEC?

In September 1960, OPEC (the Organization of Petroleum Exporting Countries) was created in Iraq during a meeting. The five founding members were the top oil producing and exporting nations of the time: Iran, Iraq, Kuwait, Venezuela and Saudi Arabia. The organization has since grown and currently includes, in order of accession: Qatar, Indonesia, Libya, United Arab Emirates, Algeria, Nigeria, Ecuador, Gabon, and Angola.

What are OPEC’s aims?

OPEC countries produce nearly 40% of the world’s oil, so any decision taken by the organization naturally influences the price of oil. OPEC’s main objective is to ensure stability in the oil market with “fair and stable” prices,meeting international demand while guaranteeing profitability for its members. OPEC increases and decreases oil production as required by these two goals.

OPEC’s important past actions

OPEC has played an important role in numerous geopolitical events. During the 1973 ‘oil crisis,’it significantly reduced oil production,raising prices in order to apply political pressure.In 1979, global production fell after the Iranian revolution, doubling the per barrel price in just twelve months.OPEC increased production to compensate, meeting growing demand from the developed nations. In the decades that followed, increased supply from Russia and the USA lessened OPEC’s dominance, although it remains the single greatest influence on the market.

OPEC’s recent actions

Oil prices increased at the end of 2016, due to a new agreement between OPEC members. For the first time since 2008, the organization agreed to reduce production, and since January, OPEC countries have cut back their total output to 32.5 million barrels per day (bpd).

Some non-OPEC countries have also agreed to joint action on reducing oil production. Current oil market conditions, and especially the medium-term outlook, are not considered strong enough to create price stability,and the decision was taken to cut back on supply in order to reduce volatility. This could have the effect of making U.S. shale oil less economically viable, one of OPEC’s long-term goals.

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5 Steps Towards Renting Commercial Space

Did you know that Houston is home to 10,700 business establishments? Businesses often consider outsourcing of warehouses to strategically align resources to the company’s core competencies. There is always a need for extra inventory space when in-house storage is filled to capacity. Seasonal public warehousing for peak demand times and to expand with a new line of business is very common.

SLB Investments, a leading provider of affordable warehouse space for rent in Houston, believes that finding and leasing warehouse space for your business is a big step. The business owner should take time to research multiple properties. Review any lease contracts with attorneys before signing on them. Only then can they be assured of renting the perfect warehouse space that’s right for their business. Here’s a look at the necessary steps to rent warehouse space, so that your legal rights and business assets are protected.

5 Things to Be Considered Before Finalizing Commercial Property

1. Determine Your Commercial Space Needs

Industrial property falls under three categories, warehouse space for lease, manufacturing space or a combination of both. It is the nature of your business that will determine the type of property and the area required for your business needs.

2. Locate the Right Property After Extensive Research

It has become really easy to search for commercial or warehouse properties, using online databases in the comfort of your own home or office. Compare properties based on their monthly rental, space offered, distance from your customer’s, partner’s and supplier’s location. In Houston, when considering a warehouse for rent, features like onsite offices, truck loading docks, power supplies, reinforced flooring and ceiling heights should be part of the things you look at to narrow down your search.

3. Plan a Visit to Your Shortlisted Properties

Once you shortlist the commercial properties online, see them in person, to detect any difference from what’s being offered online. Prior to your visit, describe your needs to the warehouse provider, who may be able to make recommendations about the property or look for potential problems. While searching, don’t overlook the need for parking space and fire prevention systems. Many warehouses offer you to remodel or change the space according to your needs, so check that out too.

4. Don’t Lock Down Any Space the Moment You Find It

Even if you think you’ve found the perfect space, keep looking. Find at least three commercial properties that work well for your business. As a matter of fact, this attempt will give you an upper hand when you negotiate the lease terms, because you won’t be desperate to close the deal. Real estate can be tricky and the key to gaining power is to stay detached.

5. Understand the Lease Terms

Once you decide upon a particular property and want to pursue a lease, request a pro forma (blank) copy of the lease. Put together a list of each aspect of the agreement and figure out what sort of terms would work for you. Some common terms in commercial leases include security deposit, rent increases, scope of subleasing and arbitration clauses. Look closely for any hidden fee provisions.

A lease for commercial property or warehouse space is a huge investment. Make sure you understand the contract before you’re legally bound. If something is not clearly spelled out or is confusing, ask questions!

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