OPEC just fucked us.

[fightforfreedom]

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.

[underpants]

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

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

[Hugin]

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.

[BadOmens]

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.

[Chuuku Davis]

30. Do you mean independence?

[marmar]

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."

[durablend]

4. Makes no difference

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

[marmar]

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

[Hugin]

9. Precisely.

It gives retail the excuse it needs to gouge away.

I have seen this story play out too many times.

[Lovie777]

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

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

[fightforfreedom]

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.

[mahina]

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

[SledDriver]

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

[Disaffected]

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

but........

[Emile]

5. Predatory Capitalism

[Amishman]

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.

[Emile]

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

[Scrivener7]

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

[lindysalsagal]

12. Wouldn't it.

[kacekwl]

11. As expected

[gab13by13]

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.

[Buckeyeblue]

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.

[Demsrule86]

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

[RAB910]

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

[WarGamer]

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

Watch the price of gasoline and how it affects inflation.

[durablend]

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

So yeah, you're gonna be feeling it.

[WarGamer]

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

[jcgoldie]

24. & GOP house may cut aid to Ukraine

Perhaps forcing concessions to Putin...

[raccoon]

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

[haele]

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

[lostnfound]

33. And the more bribeable GOP in power nt

[roamer65]

23. Demand will drop in the coming recession.

The one that the Federal Reserve is imposing on us.

[David__77]

26. That's capitalism.

…

[BlueIdaho]

27. Russian Sympathizers.

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

[budkin]

34. Tweet from Josh Marshall

Link to tweet

?s=20&t=FqVn7qfp62aKPXs0W11NAg

[Liberal In Texas]

35. October Surprise.

Wondered what it was going to be.

[Xolodno]

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.

[mahina]

37. So- maybe 4-5%?

https://www.bbc.com/news/business-61188579.amp

[Emile]

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