“America got an agreement....”
Posted on 07/15/2022 7:30:56 PM PDT by ding_dong_daddy_from_dumas
The White House on Friday said Saudi Arabia has committed to increasing oil production in July and August—a move that will help "stabilize markets considerably."
The commitment from Saudi Arabia came after bilateral meetings between President Biden and administration officials and King Salman bin Abdulaziz al Said and Crown Prince Mohammed bin Salman, as well as Saudi Ministers.
"Saudi Arabia has committed to support global oil market balancing for sustained economic growth," the White House said. "We have welcomed the increase in production levels 50 percent above what was planned for July and August."
"These steps and further steps that we anticipate over the coming weeks have and will help stabilize markets considerably," the White House said.
(Excerpt) Read more at foxnews.com ...
Fox and Bloomberg are the only sources I found with titles about this alleged Saudi agreement. Bloomberg has a paywall.
I believe the warning about refining capacity is a valid argument, frankly. I’ve seen articles in the past where Democrat Administrations and eco-leftists have fought tooth-and-nail against this country building new refining plants for crude oil and that the number we have now surprisingly low and old. In the end it’s the bottleneck, IMO
Welcome to the Biden farm. We have corn, wheat, all kinds of vegetables. How we run things around here is we first destroy all our crops by stopping all farming. Then we go to other farms and beg them for crops and then we sell it you! Yessiree, Logic rules things around this here Biden farm!
So with all the talk about Biden being disrespectful and how bad the relationship between the U.S. and Saudi Arabia is getting they go ahead and give him what he went there for in the first place.
Gas price went up 10 cents this am here since yesterday am.
1) Kingdom Saudi Arabia generally does increase production in July and August, mostly because KSA does not produce hardly any natural gas and they burn extra oil in generators to power air con throughout the country in the extra hot months.
2) This requires them to refine that extra oil to obtain the gasoline or diesel to power the generators, but this year they are buying Russian fuel (gasoline and diesel) that was refined elsewhere and shipped in. So the crude produced from KSA already scheduled may not be used domestically.
3) KSA reserves and indeed all of OPEC reserves of oil have always been suspect. OPEC allocates production quota based on reserves. KSA is allocated the maximum quota based on their declared reserves. Iraq and Iran have traditionally played a game to get more quota by declaring reserves, with $0 having been spent on exploration that year. Reserves for quota can be created by declaration with no auditing. Additionally, KSA placed 5% of Saudi Aramco shares up for public trading (”public” eventually was defined as the Saudi sovereign wealth fund) and they manufactured reserves data for audit in support of valuation of those 5%. They eventually got Saudi Aramco declared the largest company in world by how the 5% was priced.
4) Make no mistake here, the geology has always favored that region. Ancient shorelines and riverbeds deposited many instances of catastrophic avalanche of sediment on top of huge amounts of microorganisms (not dinosaurs). They were sealed off from oxygen and could not rot. Over the 80 million years since, pressure and heat created all that oil.
The US had similar amounts. Had. Past tense. The US was the Saudi Arabia of the world in the early 20th century, exporting oil all over the place. California and Illinois and Pennsylvania were huge sources. No longer. It’s mostly gone. It’s never coming back.
Biden got nothing beyond what they announced last month.
Nothing.
He’s using all of Karl Marx planks to finish off the country.
The hell with Biden and his commie regime. We should just start producing here now. They can be damned. And the Alaska pipeline should resume.
Would the oil be bought indirectly from Russia?
Would the Biden gang send it to China?
Would this lower the price of fossil fuels in the US?
Your questions are reasoned.
My bottom line is this. Biden has made no bones about the
idea the cost of gasoline has to go up so he can blackmail
folks into going electric. He has said as much.
Let that be your guide, as it relates to price relief here.
The price isn’t going down if he can help it.
He’s so lost as to how markets work, that he might not be
as able to keep the price high as he thinks he can.
Let’s hope that is the case. It’s about the only relief
we can expect, because this guy is our enemy pure and
simple.
Agree. I shake my head when Biden makes a deal and somebody posts that “America got an agreement....” I replied that Biden and America are not the same thing.
Yeah, you’re right. Biden does not speak for America.
He speaks for America’s enemies.
He’s going to buy Saudi oil with American $$$ to send to China.
The Saudi’s will not actually increase production.
Just another lie from Biden. Meanwhile Biden stops production here in the USA....
Chamberlain thought, or hoped, that Hitler would keep his word. Biden could be 1) similarly gullible, or 2) he doesn’t care, or 3) he is knowingly acting against America. Even if SA does sell us oil, in what universe is that a good thing?
I have seen gas prices dropping a little in Texas. On Saturday I paid $3.75 for regular. However, prices could go up again if Biden’s tricks stop working, especially if they keep sending oil to China and indirectly buying Russian oil.
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