OPEC+ Shocks With Surprise Output Cut At Delicate Juncture
I'm always amused by references to "assurances" from OPEC or, more recently, OPEC+.
OPEC is, unabashedly, a cartel. And cartels aren't exactly famous for being trustworthy, which is one reason they're illegal in more than a few contexts.
Cartels exist for the express purpose of manipulating prices for whatever it is they produce, generally to serve the interests of cartel members. They don't call it "manipulation," and sometimes their interests happen to align with the interests of consumers,
One more obvious piece of evidence that Saudi Arabia is NOT our friend. Murderous autocrats, terrorists and common thieves…someone remind me why SA is any better than Iran…or even the Taliban (besides having much more oil)? While I’m not big on conspiracy theories, I can’t help but speculate on what back room conversations may be directed towards how MBS and Vlad can help get rid of Joe and bring Agent Orange back to the White House.
While I know it can’t happen instantly, and hydrocarbons will be needed for a long time to come, the faster we can transition from oil, the better.
Perhaps we should slap a big tariff on any imported oil (at least any from evil empires)? Perhaps that could stimulate domestic industry to both clean up their act and invest in increased production? Or maybe I’m just a dreamer, lost in the irrelevance of the theories of environmental and resource economics I once studied with enthusiasm….
…and not important to forget that 15 of 19 9/11 hijackers were Saudi nationals, Osama…yes, legal battles still ongoing there to unearth additional information…and of course the Saudi sponsored golf league sure likes using Trump’s courses…
Had the same vision Mr. Wood …..
You’re right the Sauds arent any better than Iran or the Taliban, but yet we opennly supported them for decades. it goes to show something about our government.
my take … the world is at war, combat operations currently limited to Ukraine…proceed accordingly…
extra credit take … perhaps this also indicates significant slowing demand from China and India…
A couple of thoughts. If the main reason for inflation begins to shift to a sharp rise in energy prices, the Fed will have officially crapped out. No messing with interest rates will bother the Saudis, the Russians or the Chinese. To try to cure rising energy prices with rate hikes only harms us.
Having my news and asset values in any way beholden to Trump, bin Salman, Putin and their ilk is starting to get really old. This crowd is obviously a gang of schoolyard bullies, each with damaged prefrontal cortex and a penchant for throwing tantrums when they are bored. They all need a time out.
a good starting point would be for the internal divisions within the developed democracies to resolve in favor of your point Lucky One…