Posted on 10/05/2022 7:27:30 AM PDT by Erik Latranyi
The Organization of the Petroleum Exporting Countries (OPEC) and its oil-exporting allies announced a 2 million barrel per day cut in oil production Wednesday, bucking months of pressure from Washington to increase production and potentially spiking gas prices again.
The coalition, which includes the 13 OPEC nations and 11 non-members including Russia, made the announcement at its Vienna meeting, the first in-person summit since the beginning of the COVID-19 pandemic. The announced cut is roughly equivalent to 2 percent of global supplies.
In July, President Biden visited Saudi Arabia to directly appeal to its leaders to increase oil production, despite his administration’s frequent criticism of the kingdom’s human rights record. After the meeting, Saudi Arabia announced a production increase, but a significantly smaller one than the U.S. had requested.
The cut announced by OPEC+ is about twice the amount the U.S. has been releasing daily from the strategic petroleum reserve. White House press secretary Karine Jean-Pierre said Tuesday that future strategic petroleum reserve releases have not been discussed.
It’s unclear what direct impact the cut will have on domestic gas prices, but it could prompt an increase weeks before the midterms after the Biden administration has touted lower prices recently. Initial reports increased the price of oil by about $3 a barrel Wednesday morning. Prices have fallen from about $120 a barrel in June to around $80 a barrel amid concerns about a potential global recession.
(Excerpt) Read more at thehill.com ...
MBS is the ruler of Saudi Arabia... Mohammed bin Salman ____ (Al Saud)
Wiki>>>
MBS is Crown Prince and Prime Minister of Saudi Arabia.[3] He also serves as the chairman of the Council of Economic and Development Affairs and chairman of the Council of Political and Security Affairs. Even prior to his appointment as prime minister, he was considered the de facto ruler of Saudi Arabia, and he served as minister of defense from 2015 to 2022. He is the seventh son of King Salman.
European crude oil, up $1.49 today
OIL (BRENT)
Commodity
$93.25....+$1.49
+1.62%
“Messing with my coffee and bacon is the last straw.”
Up mostly due to higher diesel prices, so higher trucking prices. Higher transport prices all over. Such as shipping in coffee from foreign nations.
Bacon up 15%. Must be a pig shortage and lack of porker processing workers.
Processed and factory made foods have gone up more than basics that you cook at home. Such as meats, chicken, beans, rice, potatoes, vegetables and fruits....So it seems to me.
Thank you very much.
Thank you very much.
I don’t want legitimate explanations, I want heads to roll. :)
Joe’s response to Drill baby drill:
C’mon Man! it’ll take ten years before we see a drop of that oil hit the market
_______
Crude is not so fungible these days. Euro crude is $5 higher than American crude. And natural gas is insanely higher in Europe.
NATURAL GAS (HENRY HUB) (USA)
$7.02 -— Natural Gas Price Per Million Btu
In Europe, about $54 —— Natural Gas Price Per Million Btu
Bacon lovers need to raise their own backyard small sized pigs. You can do it! Just feed them on kitchen scarps and stuff from your Wendy’s and MacDonald’s dumpsters. When he gets big cut off a hind leg to make a roast. 10 days later, another leg.
Ten days later, kill him and hang him on yr back porch, and remove the bacon portions from the belly. There are YouTube videos on how to cure the bacon.
How do you hang him if you’ve cut off both hind legs?
I live in an apartment...
I haven’t seen anything either. But, with OPEC scaling back (and then adding in their cheating) I imagine we will see the base price of crude move back towards $100.
On the East Coast (MA) we are still in the mid $3’s because we never cut our gas tax. CT is approaching $3 just across the border from me.
I expect it to move back toward $4 by Thanksgiving. If we get a single storm to the Gulf Coast...we are all screwed.
I really liked it when we did not have to rely on the freakin weather to keep our cars running.
Just 1 pipeline from Canada called Keystone would be delivering 800,000+ barrels of oil per day but Warren Buffett and obama and Biden blocked it so Buffett could have his train haul oil at higher prices!
Lord Jesus let that be so.
I agree. It’s always a panic move for OPEC but I think it will still drive oil higher at least in the short term. Long term, the state of the economy will bring oil back in line likely in the low 70s. But you know anything crazy can happen in the oil market these days.
Yes, but if the U.S. was putting more supplies on the market, the global prices would be going down instead of going up.
Good question! Special apparatus needed.
Our local food banks report their expenditures for food are up 30%.
These of course tend to be basic and generic items: Food banks generally don’t buy premium price foods, as do many consumers. So, for the food banks, and for my family too, for the most part, there is little room to economize. 30% hits pretty hard.
Court to Biden: DACA is CACA!!
Up $7 in two days.....only hedge in town.
It's not entirely insane. These are not direct caps: The West is going after the oil transport, where Russia is vulnerable and the West has good leverage. This frees up transport, now in short supply, for other exporters.
And, as I posted on another thread, OPEC are cut-throats. Russia exporting less gas and oil is great for SA, etc! Plain and simple, they have all become dependent as a meth head on meth on the export of high $ petroleum products. The SA Royal family, for example, would have long ago been deposed, but, they keep the population fat, “happy”, and as with most dependencies (in this case a sub-dependency), rather useless. Which is why Filipinos, Indonesians, etc., are imported to do most of the real work.
In any case, believing the Saudis / OPEC really care about anything but their own wealth, safety, and position is pretty naïve. They will knife Russia as soon as help it, depending on what is to their own advantage.
When it comes to their own population, each sustained crest of high oil or gas prices makes the Saudis’ (etc.) task of getting though the next moderate prices period, say, $60 / barrel, a bit tougher. It’s like taxes to the gov’t. I rather doubt Saudi Arabia can hold it’s society together for long with oil at $70 / barrel. In the case of Russia, the dependency is less severe, but Russia runs nearly half their gov’t (including its military) off petro profits. Even $90 oil won't get either "there" if export volume falls considerably.
OPEC (and OPEC+) has a dilemma: Pushing the supply of oil down and the price up may very well cause the global recession to accelerate in a sort of feedback loop. In fact, what is causing this recession to develop? More than anything else, it is a global energy shortage and resulting very high prices & inflation across the board! I’m guessing that in 2022 oil prices above $70 / barrel, maybe even $60 / barrel (and gas prices over $5 / Million btu) are punches to the economy for heavy importers. (Gov’t debt is also problematic, of course.) The situation is a bit different for "energy independent" (more or less) countries.
Overpriced oil and gas, esp. in a weak economy, creates an ultimately untenable situation, where the customers' need is incompatible with the sellers' need. The heavy importers will eventually either economically fail / struggle, produce their own more economical energy, or see to it new low cost outside sources are developed.
None of those are good scenarios for SA or Russia...
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