Oil prices shot passed $90/bbl today after Saudi Arabia and then Russia announced a continuance of production cuts through the end of this year.
The BRICS alliance is going to deliver some pain to the Western alliance. Those people living in the yellow zone, with leadership chasing climate change and Green New Deal policies, are going to see more durable inflation as the cost of oil is attached to just about every product and service.
Gasoline, energy products, petroleum products, home heating oil, groceries, everything will cost more as the geopolitical battle continues; but we are supposed to pretend we are unaware of the global political dynamic.
(Zero Hedge) – […] Just after 9am ET, Saudi Arabia said it would extend the voluntary cut of 1 million b/d of for another 3 months, from October until the end of December, well beyond the expectation of just 1 more month. Saudi press agency SPA notes that the voluntary cut decision will be reviewed monthly to consider deepening the cut or increasing production.
The extension of cuts is meant to reinforce the precautionary efforts made by OPEC countries with the aim of supporting the stability of the oil market. The Saudi announcement came a shock to market as 20 of 25 traders and analysts surveyed by Bloomberg last week had predicted the additional cutback would be continued for just one additional month.
And then, literally seconds after the Saudi decision, Russian deputy PM Novak said Russia would also extend its reduction of oil exports until the end of the year, reducing its oil output by 300kb/d in voluntary cuts until December 2023.
Similar to the Saudis, Russia said that the decision to reduce oil production to be reviewed monthly to consider possibility of deepening reduction or increasing production depending on situation on the world market. (read more)
“The U.S. Strategic Petroleum Reserve is empty, my friend”…
(Yahoo) – […] Higher oil prices are bad news for the world’s central banks, which have been trying to tame high inflation since last year. Energy is a key input for economic activities, so higher oil prices generally lead to inflation.
But Saudi Arabia and Russia’s keeping their oil supply cuts for longer means “they have no interest in what central banks are worried about,” Naeem Aslam, the chief investment officer of Zaye Capital Markets, wrote in a Tuesday note seen by Insider. (read more)
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I like the kites. The circle is complete: Sails to coal/steam to diesel to nuclear and back to sails. Next they will be telling us life was better in the Dark Ages.
Oh, desertson, if you have a friend or relative in the south, especially a red area in a red state, please consider moving. I know it is so hard to think about when one is settled. But sometimes a slight adventure does the heart good.
I’m guessing you live in an urban or suburban area of Southern California. (Maybe another western state, but the gas and energy prices make me think CA.)
I say good! Deepen the hurt from Biden’s (Obama’s) insane policies. Maybe, if it gets bad enough, people across the board will start asking questions that really matter and vote en masse for a return to sanity (MAGA).
Still, we need such a massive groundswell and such an overwhelming popular vote for MAGA that even the RINOs are scared straight.
(I hold out no hope for the white guilt, leftist prigs that they will ever see reason. I have more hope that minorities will come around than I have for the insufferably neurotic white guilt crowd.)
I like to pretend the globalist clowns in power actually recognize how idiotic their policies are, and are laughing along with us, albeit from inside their walled-off mansions as the rest of us suffer.
LOL…that Bloomberg tweet at the end of this article. The Babylon Bee?? Or welcome back to the 15th century??
My electric bill is higher than my mortgage for three months now.
Oil is not required in the net zero world of tomorrow. You just haven’t finished your reeducation studies yet.
Interesting graphic showing distribution of Russian oil worldwide, inc. increase in sales to India and China, the two main customers at this point.
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Cutting oil will keep the stock market up for awhile due to higher costs. But it’s like walking a highwire with the ladies from the View, eventually the weight will snap the line. The costs will be transferred to the companies and consumers until one cannot afford and the other will have to downsize. Thank your favorite Biden voter because we have not seen the worse yet.