Ron Insana: US, Canada, Mexico Should Form NOPEC
Sunday, 15 Jun 2014 09:57 AM
OPEC stands for the Organization of Petroleum Exporting Countries. NOPEC would stand for the North American Organization of Petroleum Exporting Countries, Insana writes on CNBC.
"If combined, the resources of NAFTA partners, and subsequently, NOPEC powers, could easily change the dynamics of world oil markets, world financial markets and in the geopolitical sphere, as well," Insana argues.
"With the U.S. leading the way in the fracking revolution, Canada in tar sands and with a newly liberalized energy sector in Mexico, North America could easily rival and exceed OPEC's [energy] production, . . . making North America the envy of the energy world."
July crude futures jumped to an nine-month high Friday on the Nymex, and many experts see further gains ahead. U.S. crude oil gained 38 cents to settle at $106.91 per barrel, the highest level since Sept. 18.
"Prices have jumped to [almost]-nine-month highs as the upsurge of violence in Iraq has raised additional risk of supply disruption," Gene McGillian, an analyst at Tradition Energy in Stamford, Conn., tells Bloomberg.
"The situation in Iraq is going to continue to guide the market for a while."
As for NOPEC, Insana says it "could become the swing producer of energy products in world markets, helping to drive down prices that are currently hostage to OPEC's whims, geopolitical risk and, on occasion, excessive speculation that whips oil markets round and round."
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