Last time oil output was changed was in 2016. Back then cut of the output helped oil prices to grow as much as two times. But since than the situation has really changed. Of course, current prices cannot be compared to those in 2014. Do you remember, when Brent price went lower than $30 per barrel? The chaos in the markets was very real in some of the market spectators were even talking about collapse of Russia, which was looming over this oil-producing country. But is there a guarantee that this time everything will be different?

Last week the entire world was waiting for OPEC meeting and, anticipating it oil prices were more or less stable, but at the day of the meeting WTI took a plunge down. It was as if it was unable to withstand the pressure any longer. And now the fall continues, although the dive is taken from the high position. But what did OPEC decide after all? It appears that Russia and its allies were able to push through the increase of the output deal. It was agreed that the output will grow, but no one yet knows by how much barrels per day. With the agreement settled, Russia and Saudi Arabia are now firm in their name as two of the biggest oil producers in the world.

No one yet knows, what a full effect of Russian and Saudi Arabian push is going to be. Hard to say because the situation in the world changes rapidly and constantly. There is also a new player in the market as in 2014 the USA were allowed to start digging up their own oil and since then they are trying to be the biggest producer. All of the situation points out to the fact that right now markets can’t make heads or tails out of the situation. Neither rapid gain nor rapid fall is happening, and we think there is a reason for that to happen.

It seems that the traders were over-fed the news on the OPEC meeting. The suspense was so big that as the deal was done all of the interest has already burned through. Trading has been built in the expectation and now that there is nothing more to expect, changes do not come along. Although as soon as the output is bigger, and we have some particular numbers to look at, we can talk again as the prices are sure to change after that.

Recep Tayyip Erdogan. This man has been the president of Turkey since 2003. And it seems that he is there to stay even longer. Election that took place in Turkey yesterday show, that even though Turkish lira has fallen down very hard and overall situation in the country is less than satisfying, people want to see Recep Tayyip Erdogan as their president. But why? We think that the promises made by Erdogan in his campaign have played major role in his victory.

53 percent of the people have voted for Erdogan. It is pretty wonderful that amidst all of the crisis that has been ongoing in the country he managed to safe his post. Turkish lira has been among the worst-performing currencies in the region. Although in these 15 years Turkey has experienced economic boom as well, recent fall has crossed it all out. Through the last several months Erdogan has been outing a lot of effort into trying and stabilize lira. He was trying to fight with the Central Bank of Turkey in an attempt to lower interest rate on the currency but that didn’t help. As investors fled the country, the situation didn’t improve.

Although now we can see the perfect example of political pressure on the currency. However much politicians are trying to safe their own currencies that is no better cure for the money than certainty. As soon as 99 percent of the cotes were counted, lira gained 3 percent against the dollar. And no one had to do anything for that. Erdogan is also trying to strengthen Turkish ties with the old foreign partners, although the conflict with Russia didn’t exactly help that. It is very possible that now we will see that growth of lira. The golden age of Turkish economy?

It is very convenient that the election took place in summer. We know the Turkey is the favorite spot for a lot of tourists in the region. Beautiful nature and good people attract a lot of capital to the country. And summer is perfect for the promised economic boos just because of all the tourists-brought money. But sooner or later Erdogan will have to live up to his promises. In the long history of his ruling right now is the time to show whether he is really capable to turn Turkey into the financial EU-worthy giant or not.