Despite the fact the Western Alliance have created the policy that will deliver pain to their citizens, not a single government leader will look at this move as a bad thing.
The pain will not be felt by the elites, it will only hit the citizenry. Lowered oil production outputs that drive up gasoline prices and fuel inflationary drivers, expedite the Build Back Better narrative and objective.
However, that said, in context to this announcement, a pain that will hit the Western economies of the alliance represented in yellow, the last 18 months of moves by Mexico makes President Andres Manuel Lopez-Obrador look remarkably prescient. The new strategic relationships and trade partnerships between China, Russia, Iran, Saudi Arabia, India and beyond, take on an added geopolitical dimension.
DUBAI, April 2 (Reuters) – Saudi Arabia and other OPEC+ oil producers on Sunday announced further oil output cuts of around 1.16 million barrels per day, in a surprise move that analysts said would cause an immediate rise in prices and the United States called inadvisable.
The pledges bring the total volume of cuts by OPEC+, which groups the Organization of the Petroleum Exporting Countries with Russia and other allies, to 3.66 million bpd according to Reuters calculations, equal to 3.7% of global demand.
Sunday’s development comes a day before a virtual meeting of an OPEC+ ministerial panel, which includes Saudi Arabia and Russia, and which had been expected to stick to 2 million bpd of cuts already in place until the end of 2023.
The latest reductions could lift oil prices by $10 per barrel, the head of investment firm Pickering Energy Partners said on Sunday, while oil broker PVM said it expected an immediate jump once trading starts after the weekend.
“I expect the market to open several dollars higher … possibly as much as $3,” said PVM’s Tamas Varga. “The step is unreservedly bullish.” (read more)
We have been closely monitoring the signs of a global cleaving around the energy sector taking place. Essentially, western governments following the “Build Back Better” climate change agenda stop using coal, oil and gas to power their economic engine, while the rest of the growing economic world continues using the more efficient and traditional forms of energy to power their economies.
Within the BBB western group (identified on map in yellow), the logical consequences are increased living costs for those who live in the BBB zone, and increased prices for goods manufactured in the BBB zone. In the zone where traditional low-cost energy resources continue to be developed (grey on map), we would expect to see a lower cost of living and lower costs to create goods. Two divergent economic zones based on two different energy systems.
This potential outcome just seemed to track with the logical conclusion. The yellow zone also represented by the World Economic Forum, and the gray zone also represented by an expanding BRICS alliance. Against this predictable backdrop, we have been watching various events unfold – some obvious and some less so.
FLASHBACK to July 2022:
[…] “China’s invitation to the Kingdom of Saudi Arabia to join the ‘BRICS’ confirms that the Kingdom has a major role in building the new world and became an important and essential player in global trade and economics,” Mohammed al-Hamed, president of the Saudi Elite group in Riyadh, told Newsweek. “Saudi Arabia’s Vision 2030 is moving forward at a confident and global pace in all fields and sectors.”
[…] “This accession, if Saudi joins it, will balance the world economic system, especially since the Kingdom of Saudi Arabia is the largest exporter of oil in the world, and it’s in the G20,” Hamed said. “If it happens, this will support any economic movement and development in the world trade and economy, and record remarkable progress in social and economic aspects as Saudi Arabia should have partnerships with every country in the world.” (read more)
That would essentially be the end of the petrodollar, and – in even more consequential terms – the end of the United States ability to use the weight of the international trade currency to manipulate foreign government. The global economic system would have an alternative. The fracturing of the world, created as an outcome of energy development, would be guaranteed.
Keep in mind, in early June 2022, Federal reserve Chairman Jerome Powell stated, “Rapid changes are taking place in the global monetary system that may affect the international role of the dollar.” {LINK}
The Western Alliance (yellow) would be chasing climate change energy policy to power their economies. The rest of the world (grey), including Mexico, would be using traditional and more efficient energy development. The global cleaving around energy use would be complete.
This is not some grand conspiracy, ‘out there‘ deep geopolitical possibility, or foreboding likelihood as an outcome of short-sighted western emotion. No, this is just a predictable outcome from western created events that pushed specific countries to a natural conclusion based on their best interests.
You can debate the motives of the western leaders who structured the sanctions against Russia, and whether they knew the outcome would happen as a consequence of their effort, but the outcome was never really in doubt. Personally, I believe this outcome is what the west intended. The people inside the World Economic Forum are not stupid – ideological, yes, but not stupid. They knew this global cleaving would happen.
For a deep dive on BRICS, as predicted by CTH, {SEE HERE}. The bottom line is – the 2022 punitive economic and financial sanctions by the western nations’ alliance against Russia was exactly the reason why BRICS assembled in the first place.
Multinational corporations in control of government are what the BRICS assembly foresaw when they first assembled during the Obama administration. When multinational corporations run the policy of western government, there is going to be a problem.
In the bigger picture, the BRICS+ assembly are essentially leaders who do not want corporations and multinational banks running their government. BRICS leaders want their government running their government; and yes, that means whatever form of government that exists in their nation, even if it is communist.
BRICS leaders are aligned as anti-corporatist. That doesn’t necessarily make those government leaders better stewards, it simply means they want to make the decisions, and they do not want corporations to become more powerful than they are. As a result, if you really boil it down to the common denominator, what you find is the BRICS+ group are the opposing element to the World Economic Forum assembly.
The BRICS team intend to create an alternative option for all the other nations. An alternative to the current western trade and financial platforms operated on the use of the dollar as a currency. Perhaps many nations will use both financial mechanisms depending on their need. This is how they replace the U.S. as the global superpower.
The objective of the BRICS group is simply to present an alternative trade mechanism that permits them to conduct business regardless of the opinion of the multinational corporations in the ‘Western Alliance.’
The BRICS team, especially if Saudi Arabia, Iran and Argentina are added creating BRICS+, would indeed be a counterbalance to the control of western trade and finance. This global cleaving is moving from a possibility to a likelihood. If Saudi Arabia joins BRICS, the fracture becomes almost certain.
March 29, 2023, CHINESE national oil company CNOOC and France’s TotalEnergies have completed China’s first yuan-settled liquefied natural gas (LNG) trade through the Shanghai Petroleum and Natural Gas Exchange, the exchange said on Tuesday (Mar 28).
Approximately 65,000 tonnes of LNG imported from the UAE changed hands in the trade, it said in a statement. TotalEnergies confirmed to Reuters that the transaction involved LNG imported from the UAE but did not comment further. (read more)
This exchange between the UAE and France is taking place without dollars. If the process continues, the dollar weakens. In the geopolitical world of currency valuations and trade, this might be considered the Archduke Ferdinand moment for the end of the petrodollar. The question will become, can they grow this process with OPEC+ support and begin eventually trading oil in yuan?
MEXICO – Three new oil refineries together with new railroads and highways are under construction right now as the government continues positioning itself for energy independence. [Video Here]
The energy plan, which runs counter to the expressed demands of Canada and the United States, includes two regional ‘green’ refineries that will have the ability of turning used cooking oil into fuel. However, the plan also includes new oil refinery capacity that will permit cheap gasoline independent of the need for Mexican oil to be refined in Texas and returned.
All of the refinery projects are on schedule to be completed by the end of this year and into 2024. In essence, Mexico will have very cheap gasoline and diesel fuel in the near future. This was previously outlined as a goal by AMLO in July 2022, and is against the interests of the Biden administration. Now, those plans are becoming a reality. Mexico is not joining the North American (Western Alliance) suicide mission of windmills, solar panels and reliance on unstable green energy.
Ever since the July 2022 Oval Office press conference at the White House, CTH has been saying to keep an eye on Mexico, because these energy plans align more with the BRICS nation agenda than the goals and objectives of the World Economic Forum (western nations).
It is not accidental the U.S. government, including our intelligence agencies and DHS, has been seeding a negative overall impression of Mexico ever since. However, you can see how prescient Mexico has been when contrast against current geopolitical events.
Saudi Arabia agreed to cut 500,000 barrels of oil AFTER Secretary of Energy Granholm publicly stated that the United States would never refill the Strategic Petroleum Reserve. This statement angered the Saudi Prince!
https://www.zerohedge.com/commodities/saudi-arabia-makes-voluntary-cut-500000-barrels-day-may
Another sign of good things happening, the “progressive” left-wing Sanna Marin of Finland was defeated and has conceded. The winner is conservative and will have to form a coalition with other conservative political parties.
Pray they abort their suicidal NATO fantasy.
Mitch McConnell needs a 10/30 Valvoline transfusion.
Or possibly a 10/338 trsnsfusion.
He probably could skim some off of Gretchen Witmer’s face.
This is not looking good for the plan deniers. Imagine how difficult the narrative will be for the defeatist when the WEF and Federal Reserve collapse.
I HOPE, to see the day, the world can tell OPEC, to eat sand, drink sand, light their cities with sand, and cure they diseases with sand Our lawgivers have made the citizens of the USA and the world, kowtow to a bunch of nomads, so all lawyers judges and lawgivers of the world can get rich.
We had energy independence under Trump. A significant percentage of the American electorate hated it. There is our problem.
Well, all those dolts can set the example by publicly cutting THEIR OWN CONSUMPTION, and then maybe others will listen.
Klaus … Sell all your palaces, and give the money to the poor. Go rent a middle class 2 BR apartment, take the bus to work. Sell your cars, planes, etc, Armani suits, dine at McDonalds 1x per week.
Same for Trudope, Slow Joe, all their acolytes. REAL LEADERSHIP SETS THE EXAMPLES, AND MAKES THE SACRIFICES FIRST.
Until then…No deal.
How about just junk the whole crazy climate change crap altogether, and drill, baby, drill!
Do we have any reserves left for Delusional Joe to sell?
AMLO has been very wise on these issues. He has done what President Trump did. Bring energy independence and prosperity to his country.h
God forbid any man or woman to do such a thing. Almost immoral.
Makes you wonder how ‘healthy’ Mr AMLO is.
It won’t bring much prosperity since Mexico’s petroleum industry is nationalized (Pemex).
Heading into high seasonal demand, Gasoline inventories at 8 year lows, strategic oil reserves at 1984 lows.
Ukraine military about to get routed, petro dollar is history, and US will never be able to pay back its debt.
Let’s Go Brandon!
“Personally, I believe this outcome is what the west intended. The people inside the World Economic Forum are not stupid – ideological, yes, but not stupid. They knew this global cleaving would happen.”
Yes but something they counted on that’s not happening is Russia coming unglued. The sanctions would hurt the West of course but they would tear the RF apart. In their minds they believed the people would turn on Putin and demand his govt step aside. They have been successful in this type of warfare more often than not. They cut out all the Western corps and tried like hell to completely isolate them.
I suspect this is where some good old fashioned double crossing took place perhaps even by China. We should not give these elites too much credit. Nothing they did to rid themselves of DT was overly sophisticated. The Summer of Love (colour revolution) and the J6 frame up were about the best they hit us with. When you have no accountability, which comes from being able to control the media, you get sloppy. There’s not much need to be professional or good at your craft when you can just make up stories. None of these elites or their politicians have faced much adversity as far as I can tell. The exact opposite is true for the Chinese and Russians including their leadership.
So that is what brings us to the present day. Personally I don’t think they have a plan B (see paragraph before). However they could escalate the war to a place unmentionable and they might. The last act in a desperation move to pull the plug. The old order is breaking and there is no room for the stewards of it in the new order. I am pretty sure the leaders of the new multi polar world do not much care for these oligarchs of the old. You know since they were trying to destroy them and such. Doesn’t matter how much money or gold people like Soros and his family have. He will have to tough it out in the West which is probably going to see some pretty rough times. It is the schadenfreude that makes it all worth while.
Soros is an emissary for Rothschild- that’s why he has been protected by President after President.
I concur. I think China outfoxed ol’ Schwabby.
To be fair, gas prices have dropped as have heating oil prices. There is probably a glut in the market with soft demand due to a mild winter, thus production needs to be cut to bring supplies back into equilibrium with demand. OPEC does this all the time to restore this balance. Yes, prices will go up as supplies even out to where they need to be, but that is how markets work.
this comes on the news that joe malarkey has just opened leases on about 73 millions acres of gulf of mexico deep water oil resources.
noting: the last time we saw OPEC dropping production meant prices went skyward. (tighter supply, same or more demand). This creates an opportunity for US production to compete.
this is interesting…this might be a good way for the US oil drillers to take advantage of this opportunity to start up drilling.
also noting: it is very obvious that most of the margin profits made by US domestic drilling is for EXPORT to a foreign market (europe and china). Gulf of Mexico is not only relatively cheap and vastly superior product (higher density energy per barrel…requiring less refining).
also noting: the average turnaround for new drilling offshore is about 18 months minimum given there is about a 70 percent dead test before striking profitable sites.
also noting: the alaska drilling has been approved also, but is not as inexpensive in terms of logistics and product. The turnaround there would be two years away, minimum…if there are no political delays.
God Bless America
The turnaround there would be two years away, minimum…if there are no political delays.
Aye, there’s the rub.
With all the treacherous reversals and ceaseless hostility of this regime on energy matters there has to be serious trepidation on the part of oil companies to stick their toes in the water, so to speak.
…which they will be reluctant to do, as “Lucy is renowned for pulling back the football”, meaning FJB, and his minions, so why waste their money.
The nasty little secret is that those leases don’t necessarily contain PROVEN RESERVES. One of the tricks Obunghole pulled was to open the leases ONLY ON THE LEASES KNOW TO HAVE LITTLE OR NO PRODUCTION CAPACITY.
Smart oil exploration and development engineers know this. They will not be fooled.
Wonder if the FJB administration will file charges against the BRICS+ nations for giving campaign contributions to the Democrat opponent since the actions of these oil producing nations are going to make every American who has to pay for fuel or heating oils automatically want to vote for the Republican nominee.
Japan breaks with US allies, buys Russian oil at prices above cap:
FT on OPEC cuts
People familiar with Saudi Arabia’s thinking say Riyadh was irritated last week that the Biden administration publicly ruled out new crude purchases to replenish SPR
FT article
https://archive.is/vs50O
Play stupid games . . .
Joe B. (the dumb kid at the back of class) is holding his hand up again.
Biden isn’t making any decisions. He is just doing what he’s told and continuing to grift. Obama is using his 3rd term to finish transforming America into the shithole he wants.
Not sure this realignment now with the Saudis on board has not already been the plan of the Globalists all along. China was alreagy selected by the UN/WEF to be the lead Nation in their NWO. The Globalists love the peon control China brings. Otherwise we would have heard the Bush Cabal, who swapped literal spit with the Saudi Princes, out denouncing this backstabbing move.
Consequently, enter the CBDC ,
This is the start of the end of comfort that US voters have enjoyed for so long. Maybe somewhere down this welfare ladder real change will erupt.
I think I read somewhere that Manhattan DA Bragg wants to indict AMLO.
That’s funny!
Energy independence for any country changes the very core of international politics and trade. If there is no negotiating or price gauging, increase in production or decrease, countries around the world will look at their foreign affairs in a whole new light. No blackmail, no pipelines to blow up, no tariffs, and even worldwide shipping of oil changes.
This puts any country in a position of dealing with the world from more of an ideological basis rather than using oil as the basis. No more sucking up to bad guys with oil and no more alliances based on oil. It takes away the need for some countries to even talk with each other.
This is one of the biggest reasons the left is shutting down our energy. Any country that is energy dependent can tell much of the world NO because they are not being blackmailed by oil .
The bulk of these announced cuts (Saudi Arabia and Russia @ 500K bpd each) are designed to match future oil production to demand resulting from the growing global economic downturn.
The Greta Cult Green New Deal partly caused the Ukraine war. It is causing inflation also
The regime is under total occupation by this Chinese front led by AOC and the Green Lobby
If the US (and also Chinese ruled Canada) were to boost oil supplies, the prices would go down, Putin would run out of money and inflation would be brought under control
Now wonder what this is not happening…
Biden got played by opec. Joe thought he was cute drawing down the strategic reserve to control prices until the reserve wasn’t. OPEC pounces and Joe loses
“the end of the petro dollar”
America is 25% of the worlds GDP and we pay in dollars. Which those countries use to buy oil.
As far as I see, Russia can keep selling oil. The Europa price cap and embargo failed.
The world still has not come to grips with Biden blowing up the pipeline..