(Drivebycuriosity) - It seems Opec has a big problem. The cartel is struggling to hike the oil price to former hights, at least back to the $80s where it was last summer. So, they curbed their production, but with not much success so far, the price of oil (Brent Crude) is still in the low 60s as the chart below shows.
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Opec has to fight against two trends, two headwinds. In the US, the by far biggest user of oil, the demand for gasoline is shrinking, at least per capita (chart below). Americans seem to be less obsessed with cars & driving and cars are getting more fuel efficient over the time. This trend could accelerate because electric care are getting more popular.
And there is another trend which could destroy the power of Opec. The US oil production is rising, thanks to fracking (chart below).
Falling - or least subdued - demand for oil and climbing US production could end Opec`s regime soon.
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