An oil buyers club is threatening OPEC's dominance

Heinz-Peter Bader/Reuters

• India and China are forming an oil buyer's club, a formation that could stand to threaten OPEC's strong position in the oil market. 
• The boom in US oil production is giving the two countries the ability to do this. 
• This formation is essentially an electric-vehicle play. 

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When reports emerged that India and China are in talks about forming an oil buyers’ club, OPEC was probably too busy with its upcoming June 22 meeting to concern itself with that dangerous alliance. Now, it may be time for it to start worrying.

“The timing is right. The boom in U.S. oil and gas production gives us greater leverage against OPEC,” the Times of India quoted an Indian official as saying last month after the formal start of said talks. The two countries, after all, account for a combined 17 percent of global oil consumption and they are the ones that would be the hardest hit if prices rise as a result of OPEC’s actions.

See the rest of the story at Business Insider

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See Also:

• Trump said Saudi Arabia will bring 2 million barrels per day to the market — here's why that's unlikely
• Rising gas prices are taking a big chunk out of people's disposable income
• The US is pumping out more oil than 12 of 14 OPEC members.

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