Posted on 08/03/2022 7:50:27 AM PDT by BeauBo
The OPEC+ group gave the go-ahead to lift their oil production targets for September by 100,000 bpd...
Today's OPEC+ meeting is the first meeting since the group decided to roll back by the end of August all the cuts from May 2020, when the current agreement started.
Analysts had expected the alliance to endorse either flat targets for September compared to August, or a slight increase.
Ahead of the meeting on Wednesday, the U.S. Department of the State approved on Tuesday a possible Foreign Military Sale to Saudi Arabia—OPEC's top producer—of PATRIOT MIM-104E Guidance Enhanced Missile-Tactical Ballistic Missiles (GEM-T) and related equipment for an estimated cost of $3.05 billion. The State Department also cleared a possible Foreign Military Sale to the United Arab Emirates (UAE) for an estimated cost of $2.245 billion...
Higher oil production was one of the reasons for President Biden's visit to the Kingdom last month, although the White House refrained from stating it openly.
(Excerpt) Read more at oilprice.com ...
He also had to lift the restrictions that he put on defensive PATRIOT missile resupply to the Saudis (that he imposed over the killing of senior Muslim Brotherhood official Jamal Khashoggi).
This month's rise in production quota's is relatively modest. Last month's were more significant, when they pretty much reversed the COVID-era cutbacks, and producers were freed to start replacing Russian market share to some degree. Russia has been falling short of its production quotas since the invasion of the Ukraine, and some others are receiving more OPEC production quota, to help keep prices balanced.
Hell....Brandon takes more than that out of our reserves every day.
This is a bit like leaving a ten cent tip. It’s more insulting than leaving no tip at all. Looks like they are sending Biden a message.
Praise be! The US uses 20 million per day, 100 million world wide. That extra 100,000 will save us. Now Biden’s got Putin where he wants him. What a joke.
Gas prices will drop to 3.50.
In December, it’ll go back to 5.00
Gas prices will drop to 3.50.
In December, it’ll go back to 5.00
Drop in the ocean.....................
They are likely to gradually roll out changes in production quotas across future meetings, but they will basically reflect the new production deals that have been previously put in place, as they are becoming ready to produce.
There has been a wave of such new investment deals taking place, where European Governments and Oil Majors have been committing billions to increase production in areas outside of Russia.
Some of those deals might be increasing production in a matter of months, and others will take years, but as they come online, their increase in OPEC production quota has already pretty much been coordinated within OPEC/OPEC+. It will just be announced when it is about to go into effect.
https://www.weeklyblitz.net/opinion/saudi-arabia-reselling-russian-oil-is-depleting-western-resources/
Saudi Arabia is buying Russian oil cheap and selling it back to us. SMH
It’s just like they left Biden a 10 cent tip.
And how much of that 100,000 bbl is actually refined as gasoline? The common breakdown is approx 46% gas and the rest various other items. Decent breakdown here:
https://petroleumservicecompany.com/blog/oil-barrel-42-gallon-breakdown/
Quick SWAG would be about a mere 193,000 gals of gasoline. But, if they want to let me have it that’ll be okay. 🙂👍⛽
Absolutely! I can already see prople praising the cheap gas around here. You’d think 70 cents drop was a miracle.
Just image how many corrupt Russian, Saudi and DC oligarchs are getting their cuts along the way.
They sure are, and it's FJB!
If we could flood the market and lower the global price of oil, it would end the Ukraine war in short order. But lowering the price clashes with the politics of global warming. And when it comes down to it, which is more important? Right, global warming.
The only way it won’t go back to that would be if we really do have a massive red wave in November (unlikely, due to cheating and reluctance to elect RINOs), causing speculators to drop the price of oil by a few dozen dollars.
Probably a net decline in oil production worldwide.
“The US uses 20 million per day, 100 million world wide.”
Another 100,000 bpd would replace about 3% of Russia’s current exports (3.5 million).
A much bigger factor in the near term will be demand. In a recession, Global demand can drop more than 10% (more than the total of Russia’s current exports). Then the politics of who has to eat the reduced quotas within OPEC+ will become a big deal.
We will have to see what they actually pump. Since OPEC+ has been underproducing their quotas, the Saudis and Emiratis could actually ramp up production more than this month’s quota increase might indicate.
Beyond the current quota number however, a lot of money is being sunk into increasing capacity of non-Russian producers. That will bear fruit later.
OPEC currently produces about 30M barrels per day. 100K is an additional 0.3%. It’s a statistical rounding error.
Two things. You don’t have to ask producers to pump more oil. Hundred dollar oil does that. Second, a question, who is buying Russian oil at a discount and reselling it? And then showing that as an increase in production?
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