This article reevaluates Opec’s power to control the global oil market and focuses on a political scientist’s research that suggests the cartel’s strength has been overblown for years. “But a closer look at OPEC’s real influence over the oil market suggests that we’re making a huge mistake about its global power, says Brown University political scientist Jeff Colgan. A specialist in oil and global conflict, Colgan tracked almost three decades of oil production data and compared it to official OPEC policy, which sets quotas for member countries. What he found surprised him: OPEC’s decisions were all but irrelevant.” [Boston Globe]

HETCO, an energy trading business half owned by oil company Hess, has been on the market for a while and will be acquired by Oaktree Capital Management. HETCO is the latest trading house to change ownership as traditional players in the space like banks exit due to regulatory changes. Bruce Karsh, co-chairman and chief investment officer of Oaktree, said: “There is tremendous opportunity in the energy trading business today as a result of changing market dynamics related to traditional participants exiting the industry.” [Financial Times]

South African firm Sasol took a final investment decision to build an $8.1 billion ethane cracker in Louisiana. The company is also expected to construct a gas-to-liquids plant in the same location. US petrochemical business economics are being supported by historically low priced natural gas, which is a primary feedstock. [Reuters]