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OPEC+ agrees on deep oil production cuts

20 Comments
By Ahmad Ghaddar, Alex Lawler and Rowena Edwards

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After snubbing Biden during his trip, Saudi seems to be openly allying with Russia now by raising oil prices which will make oil discounts given by Russia to its customers more attractive.

So much for the efforts to turn Russia into an isolated pariah state.

0 ( +3 / -3 )

The West has accused Russia of weaponising energy,

No, blowing up Nordstream is the literal weaponising energy. The U.S. doesn’t care if Europe doesn’t have enough gas this winter. Russia and Germany have spent billions of dollars and years building the pipelines. Why would Russian blow it up when they can just turn it off?

-1 ( +4 / -5 )

Just go to show how little leverage Jerome Powell has on inflation controls. If anything Powell is only in control of who to blame for this global inflation problem. OPEC + China has more say on the American economy than anyone else.

Raising interest rate in the hope consumers would benefit from the high dollar (and reduction in prices from import) is so dumb it's akin to dealing with an obesity problem by putting more notches in your belt.

Powell should be encouraging more domestic capacity so as to be less reliant on foreign imports, so good luck with getting businesses to invest for more capacity when you raise interest rate.

I can only think importers of Chinese goods and OPEC+ are still running the show in the White House, despite all the anti-China rhetoric otherwise.

0 ( +2 / -2 )

Time to ditch OPEC oil as quickly as possible.

3 ( +5 / -2 )

So much for the efforts to turn Russia into an isolated pariah state.

Indeed, there’s no better way of restoring your global reputation by colluding with Saudi Arabia to make people’s energy bills more expensive in time for winter. LOL.

0 ( +2 / -2 )

Indeed, there’s no better way of restoring your global reputation by colluding with Saudi Arabia to make people’s energy bills more expensive in time for winter. LOL.

In case you didn’t notice Saudi Arabia are American allies to whom US Presidents regularly pay visits. If even staunch US allies are not willing to do US bidding then the egg is on the face of the current US administration.

2 ( +5 / -3 )

With an even weaker Yen, Japan is so screwed beyond imagination now. The energy prices hike is detrimental to Japan!

-1 ( +3 / -4 )

Time for the US to invade Saudi Arabia...The must be some WMDs there somewhere...

0 ( +3 / -3 )

The request to Saudi came directly from Putin. Which side is Saudi on?

4 ( +5 / -1 )

Japan will certainly feel the pinch due most all oil comes from Saudi Arabia, UAE, Kuwait, Qatar and Russia.

The US oil companies will jump on this to raise prices, but only 7% of US oil is imported, mostly from Canada and probably 1-2% from OPEC+. The US is the largest oil producer in the world, but the oil companies don't want people to know it. More record profits by blaming it on OPEC.

2 ( +3 / -1 )

Maybe time to think a bit about US-Saudi relations. Maybe time to cut off their arms flow.

On the plus side, on both sides of the Atlantic, higher energy prices are stimulating the move towards renewables. Our grandkids will thank us for that, certainly, but we're the ones who have to pinch the belts.

3 ( +3 / -0 )

OPEC has given a finger to the G7 oil price cap plan by raising oil prices.

What G7 was attempting was a buyers cartel, and OPEC being a sellers cartel is unhappy about it.

It’s not so much about Saudi taking sides than Saudi being a leader of the sellers cartel protecting its own economic interests.

https://seekingalpha.com/article/4539019-price-cap-russian-oil-massive-arbitrage-opportunity

-1 ( +0 / -1 )

Japan will certainly feel the pinch

Japan will feel the pinch because it’s not in a position to accept Russian oil at a discount unlike other oil hungry energy deficient Asian countries like China and India.

-3 ( +0 / -3 )

It seems that it isn't only OPEC.

 Germany’s Economy Minister Robert Habeck as basically accuses the USA of profiteering and raising prices on LNG especially after Nordstream sabotage.

So looks like everyone is trying to make money on this war.

-1 ( +2 / -3 )

Those acting surprised by OPEC and Saudi Arabia siding with Russia, you need to look at reality.

Saudi is pounding the heck out of Yemen, Venezuela on the naughty list, Mexico being blackmailed by the USA, Russia sanctions.

If you were Saudi Arabia wouldn't you look at those things and think: "am I next?" "Can this be done to me?" Then your answer is " yes, the instant I fall from grace in the eyes of the USA and or Europe"

-1 ( +2 / -3 )

An attempt by OPEC to control the West and to increase financial instability in Europe and the West by increasing inflation and costs through higher fuel costs driven by reduced supplies. Also an attempt to drive people to rely on Russian suppliers during it's invasion of Ukraine. This shows OPEC is clearly supporting the Russian invasion and they need to be dealt with for doing so. Cut off technology products from OPEC nations. stop all trade in arms to OPEC nations. Or increase costs of their trade to cover the increase in fuel costs.

And move faster to phase out fossil fuels.

1 ( +1 / -0 )

OPEC countries are just 6.4% of the world's population. Not the first time they have held us to ransom. Those countries need high-tech items for their oil production plants which are mostly manufactured in the west. Up the prices of those.

0 ( +2 / -2 )

Those countries need high-tech items for their oil production plants which are mostly manufactured in the west. Up the prices of those.

Yeah so the oil producers will pass on the costs to the consumers, leading to even higher oil prices. Please help to explain how it will help oil importing countries instead of oil exporting countries of the OPEC cartel.

Seems that Europe has shot itself in the foot by sanctioning Russian oil.

A country producing more than 10% of the global oil demand can not be boycotted so easily. The countries buying Russian oil are 40% of the world population.

0 ( +1 / -1 )

And for those who think that G7 oil price cap will work flawlessly, how about the following scenario -

Russia stops selling all oil and gas even to those countries which do not agree to the oil price cap. Its revenues are nil but it stores all its production in a reserve.

Oil prices will shoot up to 380 USD a barrel as per estimates, and think about the havoc that would cause. It will be a game of chicken and an autocratic dictatorship which does not have to face its people in elections will not be the one to blink first.

0 ( +0 / -0 )

The U.S. should stop providing weaponry & parts to the Saudis. Let them buy Russia’s crappy weapons.

0 ( +0 / -0 )

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