Oil production cut thread

[Okay, maybe Mike Johnson is a competent parliamentarian.]

Because the OPEC+ countries don't include the US and so there should be a place to discuss this on this board too.

My hot take? It's a pretty dramatic declaration of loyalties on the Saudis' part. I'm mystified that it's mostly not being reported as one. They want stability in their fellow autocracies and chaos in the so-called free world.That's all there is to it, and I can't think of any way or any time they could have made it clearer.

[TiltsAreUnderrated]

I think it's shorter-term than that: they want to make more money/barrel out of their oil, and simply don't care what happens to their customers. Russia is less willing and less able to undercut them; Iran and Venezuela are sanctioned.

The US apparently feels betrayed. In this case, they shouldn't. The solution to problems caused by lying down with dogs is getting up. Far too little was done after the first OPEC crisis, and the very formation of OPEC+ was all the warning the world needed as to what was to come.

[walleye26]

I think if we haven’t already, immediately cut off all the weapons sales and aid that we give them.

[Okay, maybe Mike Johnson is a competent parliamentarian.]

I think if we haven’t already, immediately cut off all the weapons sales and aid that we give them.

Of course we haven't.

[TiltsAreUnderrated]

I think if we haven’t already, immediately cut off all the weapons sales and aid that we give them.

"If you want to cut production, you won't need so many Patriot missiles to protect all those refineries." (Unfortunately, this isn't going to happen.)

[CumbrianLefty]

I think if we haven’t already, immediately cut off all the weapons sales and aid that we give them.

Of course we haven't.

And probably won't, though maybe Biden can surprise many of us on this as well.

[jaichind]

https://oilprice.com/Latest-Energy-News/World-News/US-Considers-Easing-Venezuela-Sanctions-To-Boost-Oil-Supply.html

"U.S. Considers Easing Venezuela Sanctions To Boost Oil Supply"


https://www.foxbusiness.com/politics/biden-release-10m-more-barrels-strategic-petroleum-reserve-november-wake-opec-cuts

"Biden to release 10M more barrels from Strategic Petroleum Reserve in November in wake of OPEC+ cuts"

This is on top of a big drain on the oil reserves this last year


If I were the USA I would be careful about any retaliation against SA.   One of the core pillars of USD as the world reserve currency is the USA-SA agreement that oil will be priced in USD which means everyone needs to hold USD.   If the retaliation on SA gets tough enough then SA might start to move away from that agreement and accelerate de-dollarization which is now a key Russia strategic goal.