Both the U.S. government and OPEC are making price increase noises about crude oil. CNN and Morning Star Research are saying OPEC+ announced a cut in production of about 1.4 million barrels per day this week. The Saudi’s, by themselves, plan to cut 1 million barrels per day.
We want to thank the Marc Abear for this Contribution – Please direct yours to Editor@GraniteGrok.com.
You can review our ‘Op-Ed Guidelines‘ on the FAQ Page.
It’s another Biden foreign policy success.
Look for the Saudi cut to start on or about July first. The planned duration is at least one month and maybe longer, meaning into the fall. The motivation for the Saudis to drive oil prices up is the Saudis have domestic spending to pay for. They have engaged in a fair amount of infrastructure spending, airports, “The Line” and assorted projects in their cities.
The Saudi goal is to move oil prices from about $75 per barrel to $87 per barrel. They really want $95 dollars a barrel which is an increase of crude price by more than 25%. The U.S. Energy Information Administration says there shouldn’t be much impact on you and me immediately, but by the New Year look for retail increases of about 10%. Trust that assessment at your own risk.
The Saudis say they are not worried U.S. producers will step up and pump more. Their expectation is the Biden regime will limit any expansion of U.S. fossil fuel production due to the Biden regime’s commitment to tilting with windmills and solar panels.
China is the world’s largest importer of fossil fuels. Did you know that? Why is it okay for China to use huge and growing amounts of fossil fuels? Something just isn’t logically consistent in the application of our regime’s policy. We are committing economic suicide to advance China’s interests.
You can’t be too reliant on China. They are such a good, trusted trading partner and ally. There’s nothing to worry about there… right? Remember Biden’s deft handling of Afghanistan, the supply chain disruptions, etc…
