Caracas Chronicles

You know what’s hugely important and we don’t know much about? OPEC.

This article from today’s Wall Street Journal talks about the fracking revolution, and how it creates cracks (fracks?) within OPEC. Surprisingly, it seems like the Africans have a lot to lose from fracking. Not surprisingly, so does Nicolás Maduro.

The money quote:

Nigeria has been hardest hit because its light and low-sulfur crudes compete directly with shale oil, unlike Saudi Arabia’s heavier and more sulfurous crude. Other OPEC members who don’t serve the U.S. market, such as Iran, are also complaining. Muhammad Ali Khatibi, Iran’s envoy to OPEC, told The Wall Street Journal that a combination of rising U.S. shale production and tepid demand is bringing “the price down.”

While Saudi Arabia can tolerate lower prices, “there will be some members, like Venezuela, Iran who will struggle at $90,” said Amrita Sen, chief oil analyst at London-based Energy Aspects Ltd. The front month Brent contract for July settled at $102.62 a barrel Monday. Venezuela’s oil minister said on Monday that he would push for a cut in OPEC production if oil falls below $100 a barrel.

Yeah, good luck with that, Rafito.