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Wed Oct 5, 2022, 08:35 AM

OPEC just fucked us.

They are cutting oil production by 2 million barrels a day. Right before our election, isn't that interesting.

This will raise gas prices and inflation.

38 replies, 2280 views

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Reply OPEC just fucked us. (Original post)
fightforfreedom Oct 5 OP
underpants Oct 5 #1
Hugin Oct 5 #6
BadOmens Oct 5 #29
Chuuku Davis Oct 5 #30
marmar Oct 5 #2
durablend Oct 5 #4
marmar Oct 5 #7
Hugin Oct 5 #9
Lovie777 Oct 5 #3
fightforfreedom Oct 5 #8
mahina Oct 5 #32
SledDriver Oct 5 #25
Disaffected Oct 5 #31
Emile Oct 5 #5
Amishman Oct 5 #14
Emile Oct 5 #19
Scrivener7 Oct 5 #10
lindysalsagal Oct 5 #12
kacekwl Oct 5 #11
gab13by13 Oct 5 #13
Buckeyeblue Oct 5 #15
Demsrule86 Oct 5 #16
RAB910 Oct 5 #17
WarGamer Oct 5 #20
durablend Oct 5 #28
WarGamer Oct 5 #18
jcgoldie Oct 5 #24
raccoon Oct 5 #21
haele Oct 5 #22
lostnfound Oct 5 #33
roamer65 Oct 5 #23
David__77 Oct 5 #26
BlueIdaho Oct 5 #27
budkin Oct 5 #34
Liberal In Texas Oct 5 #35
Xolodno Oct 5 #36
mahina Oct 5 #37
Emile Oct 5 #38

Response to fightforfreedom (Original post)

Wed Oct 5, 2022, 08:38 AM

1. No doubt this will have an effect and they know it.

They’ve invested heavily in the Clustertrump and anything green hurts them.

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Response to underpants (Reply #1)

Wed Oct 5, 2022, 08:47 AM

6. As always, it's all about oil.

And greed.

More specifically the exploiters fighting the very public revelation of last summer global warming is really a thing.

The smart money shifted to the ERS (or whatever the acronym is) leaving those with unitary economies built around a single fossil fuel without many options.

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Response to underpants (Reply #1)

Wed Oct 5, 2022, 10:26 AM

29. Imagine if we had actual real energy independence,

where a cut like this would just be a blip. Europe as it's reliance on Russia and the US on the Middle East.

But the GOP is all about short term gains and will never see what's needed through to fruition.

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Response to BadOmens (Reply #29)

Wed Oct 5, 2022, 10:28 AM

30. Do you mean independence?

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Response to fightforfreedom (Original post)

Wed Oct 5, 2022, 08:43 AM

2. But this is an excerpt from a Bloomberg article on the cut:


"If the full meeting of the Organization of Petroleum Exporting Countries and its allies ratify the proposal, it would have a smaller impact on global supply than the headline number suggests because several countries are already pumping well below their quotas. That means they would already be in compliance with their new limits without having to reduce production."


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Response to marmar (Reply #2)

Wed Oct 5, 2022, 08:46 AM

4. Makes no difference

Markets will see "cut" and the prices will go through the roof.

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Response to durablend (Reply #4)

Wed Oct 5, 2022, 08:47 AM

7. Wall Street has gotten the news, but the crude oil price is up less than one percent now.

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Response to durablend (Reply #4)

Wed Oct 5, 2022, 08:49 AM

9. Precisely.

It gives retail the excuse it needs to gouge away.

I have seen this story play out too many times.

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Response to fightforfreedom (Original post)

Wed Oct 5, 2022, 08:44 AM

3. I'm pretty sure the USA can obtain oil elsewhere ......

Well I hope so, this administration probably have weighed on this scenario.

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Response to Lovie777 (Reply #3)

Wed Oct 5, 2022, 08:48 AM

8. Obtaining oil is not the problem.

When they cut production the price on a barrel of oil instantly goes up. This raises gas prices which leads to inflation.

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Response to fightforfreedom (Reply #8)

Wed Oct 5, 2022, 10:46 AM

32. Prices are strangely sticky downwards when prices per barrel drop

Gas still costs 5.60/gal here. 4.66 at Costco. (Honolulu)

Most of the oil used to come from Canada but now it comes from Indonesia

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Response to Lovie777 (Reply #3)

Wed Oct 5, 2022, 10:08 AM

25. Problem is that our refineries can't process the oil from elsewhere

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Response to Lovie777 (Reply #3)

Wed Oct 5, 2022, 10:38 AM

31. Well, Canada has oil we are willing to send to the US

but........

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Response to fightforfreedom (Original post)

Wed Oct 5, 2022, 08:46 AM

5. Predatory Capitalism

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Response to Emile (Reply #5)

Wed Oct 5, 2022, 09:05 AM

14. The OPEC cartel isn't really aligned with the model of capitalism

It's a lot more like what you would find in a command economy.

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Response to Amishman (Reply #14)

Wed Oct 5, 2022, 09:47 AM

19. Sure, okay. . If that was true the price would not go up!

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Response to fightforfreedom (Original post)

Wed Oct 5, 2022, 08:56 AM

10. Wouldn't it be great if we all lived in a way that minimized our oil dependence?

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Response to Scrivener7 (Reply #10)

Wed Oct 5, 2022, 09:04 AM

12. Wouldn't it.

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Response to fightforfreedom (Original post)

Wed Oct 5, 2022, 09:03 AM

11. As expected

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Response to fightforfreedom (Original post)

Wed Oct 5, 2022, 09:04 AM

13. Lets see,

In 2020 the US imported 5.88 million b/d of crude oil.

In 2021 the US exported 2.9 million b/d.
In 2022 the US exported 3.04 million b/d.

Which means we are still a net importer of oil.

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Response to fightforfreedom (Original post)

Wed Oct 5, 2022, 09:12 AM

15. This is really about the Ukrainian War isn't it?

Create an energy shortage so Europe will demand that Ukraine accepts Russia "peace" proposals.

SA would prefer to have a more "friendly" US government. But I don't think that is driving their decision here. I think it is all about Russia.

If Putin gets displaced by a "democracy" friendly government, Europe and the US will help them gain market share and maybe encourage them to not to participate with NATO's collusion to control oil output.

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Response to fightforfreedom (Original post)

Wed Oct 5, 2022, 09:18 AM

16. They should be punished...and called out

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Response to fightforfreedom (Original post)

Wed Oct 5, 2022, 09:34 AM

17. Oil prices are slightly negative, I don't think this news is as big as people think

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Response to RAB910 (Reply #17)

Wed Oct 5, 2022, 09:47 AM

20. the news headline is more important than the production cut.

Watch the price of gasoline and how it affects inflation.

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Response to WarGamer (Reply #20)

Wed Oct 5, 2022, 10:14 AM

28. RBOB is up 40 cents in a month even *before* this

So yeah, you're gonna be feeling it.

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Response to fightforfreedom (Original post)

Wed Oct 5, 2022, 09:47 AM

18. Not surprising.

For 3 reasons



1) Tilting the US Election

2) MBS still pissed off because Biden confronted him about Khashoggi.

3) Russia wants energy chaos and to hurt Biden

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Response to WarGamer (Reply #18)

Wed Oct 5, 2022, 10:03 AM

24. & GOP house may cut aid to Ukraine

Perhaps forcing concessions to Putin...

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Response to fightforfreedom (Original post)

Wed Oct 5, 2022, 09:57 AM

21. Reckon they ran this by their friends Donald and Jared? Nt

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Response to fightforfreedom (Original post)

Wed Oct 5, 2022, 09:59 AM

22. Of course they are. An unstable US is good for them.

They still get their weapons and commodities from us, as well as our money.

Pain and chaos only creates more profits for them. And keeps us from looking too closely at their mob boss politics and diplomacy, and maybe cutting some of our support for their bullshit rights policies. They do better dragging us down. They'll do the same to their other major allay, China, if China starts interfering with their "internal politics", which will probably inevitably start to happen.

Haele

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Response to haele (Reply #22)

Wed Oct 5, 2022, 10:49 AM

33. And the more bribeable GOP in power nt

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Response to fightforfreedom (Original post)

Wed Oct 5, 2022, 10:02 AM

23. Demand will drop in the coming recession.

The one that the Federal Reserve is imposing on us.

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Response to fightforfreedom (Original post)

Wed Oct 5, 2022, 10:09 AM

26. That's capitalism.

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Response to fightforfreedom (Original post)

Wed Oct 5, 2022, 10:10 AM

27. Russian Sympathizers.

The sooner we can cut ties with middle eastern oil the better.

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Response to fightforfreedom (Original post)

Wed Oct 5, 2022, 10:49 AM

34. Tweet from Josh Marshall


?s=20&t=FqVn7qfp62aKPXs0W11NAg

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Response to fightforfreedom (Original post)

Wed Oct 5, 2022, 12:52 PM

35. October Surprise.

Wondered what it was going to be.

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Response to fightforfreedom (Original post)

Wed Oct 5, 2022, 01:07 PM

36. Rising interest rates from all central banks...

...across the globe are going to cut the demand for oil across the world. So cutting production makes sense to them rather than tank the oil price.

But how long production is cut will be debatable. OPEC nations often quietly start producing more after awhile so they can take increased share of the market. Cartels are notoriously hard to keep production/price controls.

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Response to fightforfreedom (Original post)

Wed Oct 5, 2022, 02:23 PM

38. Gas raised over $1.00 per gallon overnight here in the Midwest.

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