Posted on 05/06/2022 9:50:33 AM PDT by rktman
At a meeting of the Organization of the Petroleum Exporting Countries (OPEC) on Thursday in London, the oil cartel voted on a modest production increase and announced that the organization is not to blame for the disruptions and price increases since Russia invaded Ukraine in late February.
OPEC also blamed the threat to demand on China for its recent draconian coronavirus lockdowns.
Reuters reported on OPEC once again rejected Joe Biden and other western countries’ request for increased oil production. The report included the fact that Russia took part in the OPEC+ gathering:
Ignoring calls from Western nations for accelerating output hikes, the group agreed to raise its June production target by 432,000 barrels per day, in line with an existing plan to unwind curbs made in 2020 when the COVID-19 pandemic hammered demand.
In March, crude prices hit their highest since 2008 at more than $139 a barrel after Russia’s invasion of Ukraine exacerbated supply concerns that were already fuelling a rally. Benchmark Brent crude traded above $111 on Thursday.
Two sources present at the meeting said delegates completely avoided any discussion about sanctions on Russia, wrapping up talks in near record time of just under 15 minutes.
“OPEC+ continues to view this as a problem of the West’s own making and not a fundamental supply issue that it should respond to,” Callum Macpherson from Investec, said in the Reuters report, adding only Saudi Arabia and the United Arab Emirates have the capacity to make significant increases.
“If they were to do so, the ensuing falling out with Russia could bring an end to OPEC+,” Macpherson said.
(Excerpt) Read more at breitbart.com ...
Agreed, when oil production in the U.S. and the Great White North is greatly stigmatized by these airheads running our countries, you can not simply blame OPEC for the result.
The neocons and Biden admin asked OPEC to bail them out of their stupid.
OPEC declined.
Pretty windy in our vicinity today. Wish I had one of them bird slicer/dicer devices hooked up to my breaker panel. Butt, I was so counting on branDUHn closing the deal with opec. NOT! Lucky for us jimmy carville says we’re just two stoopid to understand how good the economy is. Gas prices and all. SMDH!
My wife bought a couple bright brass looking self adhesive items for her vehicle and mine. They look very official, like they came from the manufacturer. They say:
FJB
Edition
I couldn’t find the analysis of why oil prices will remain high that involved the sudden price crash that happened a short while ago. But it went something like this. So many shale operators were in the market that hardly anyone was making any money. The price was stuck on a bottom that really hurt some of the more marginal suppliers who had a higher extraction cost than American shale. Then there was a disaster where, briefly the price went negative, meaning people with full tanks where paying people to empty their tanks because they’d bought oil months prior and had no place to store it. Then, suddenly, the price turned around and everyone was making money hand over fist. People who could increase pumping did an analysis that said the additional oil pumped would end up losing them money as it would flood the market and the price drop would exceed the money gained by pumping more oil. This analyst said it was easy enough to figure out what your optimal income vs increased oil pumping was at any given price and the market had begun self-regulating to optimize profit yield.
This is my take, and he had a lot of data to back it up. But the message was we’re in for high prices and nobody is going to ask the government for new leases or softer regulations because it is not in their interest to lower prices.
“OPEC+ continues to view this as a problem of the West’s own making and not a fundamental supply issue that it should respond to,” Callum Macpherson from Investec, said
Their own making? Ouch!
Besides having to beg OPEC, Biden is draining the Strategic Oil Reserve and sending it to Europe without authorization. It seems he intends to run this country out of oil to force his deranged green energy scheme on us.
But now he’s refilling the SOR with more expensive oil. This can only make sense to a ‘Progressive’.
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