Tag: OPEC

Saudi Arabia

OPEC won’t back West on Ukraine, hostile to Biden – Pearls and Irritations

Mohammed bin Salman and Vladimir Putin shaking hands

There will be myriad effects from the decision last week by the OPEC+ oil producers – led by Saudi Arabia and Russia – to cut production and increase the price of oil.

None of them are good. The energy supply and price squeeze in a Europe already bracing for brutal days and nights as winter approaches will be tightened. Inflation gets a boost – and the central banks will keep raising interest rates. Russia will reap revenues to ease the vice of Western sanctions imposed to punish Putin and his regime for the war in Ukraine. Saudi Arabia and the other OPEC partners will enjoy more money from petrol tanks flowing into their banks.

The OPEC+ decision also signals a deeper entente between Russia and Saudi Arabia: calculated strategic scheming by Vladimir Putin and Mohammed bin Salman, Saudi Arabia’s crown prince and the effective leader of the country.

Source: OPEC won’t back West on Ukraine, hostile to Biden – Pearls and Irritations

Fossil Fuel Industry

As Saudis stab Biden in the Back with OPEC+ Oil Cut, Only Electric Vehicles can Make US Independent

One good thing about the OPEC+ production cut and consequent likely rise in gasoline prices? It will help even more consumers see the beauty of having an electric car. We just plug ours in at home. During the day (I don’t work 9-5), it is taking in electricity generated by our solar panels, which is free. The idea of running my car on clean, free sunlight is a trip. I look forward to the time, which is rapidly nearing, when everyone can afford to do the same, and can in fact save loads of money in doing so, not to mention saving the earth from a baleful climate emergency.

Source: As Saudis stab Biden in the Back with OPEC+ Oil Cut, Only Electric Vehicles can Make US Independent

Oil Warfare

Did OPEC Just Start Preparing for the End of the Oil Era? | The Nation

Sunday, April 17, was the designated moment. The world’s leading oil producers were expected to bring fresh discipline to the chaotic petroleum market and spark a return to high prices.

Source: Did OPEC Just Start Preparing for the End of the Oil Era? | The Nation

Economic War

Falling petrol price good news for consumers but why didn’t experts see it coming?

<i>Illustration: Kerrie Leishman.</i>

Then a sudden oversupply pushed prices south, until the Organisation of the Petroleum Exporting Countries met in November. The US and Canada are not members of OPEC. It could have decided to wind back production to restore prices, as it had done in the past, and many experts expected it to again. But that would have been a gift to the upstarts and also to Russia, which isn’t a member. Instead it decided to destroy their business model. Maintaining production and allowing the oil price to plummet would hurt the US and Canada far more than it would hurt OPEC.

Countries damaged by falling prices are Russia,Venezuela & Nigeria. Is this as Putin says a direct economic attack on the Russian economy?