Several OPEC+ members are set to tighten global production by an additional 1.16 million barrels per day until the end of the year, further burdening central bank efforts to curtail global inflation.
The clowns in D.C. have of course criticized Sunday’s announcement where eight OPEC+ producers said they would remove more than a combined 1 million barrels per day from global oil markets.
This adds to Russia’s existing intentions to trim ½ million barrels per day of its own production from February output levels through the end of the year — bringing the combined voluntary cuts of OPEC+ members in excess of 1.6 million bpd.
Joey’s administration has repeatedly lambasted the OPEC+ group for its production cuts, citing the inflationary toll on households and flinging accusations of camaraderie with sanctions-struck Russia.
There’s a painful lesson to be learned here. After going from being a net exporter of energy to now a slave to the rest of the world for energy, the United States under its current reign of control is postured from a place of weakness.
Curbs in production lead to smaller supply, causing higher prices at the pump in importing countries, which then provides a boost for headline inflation figures.
Relations devolved into a war of words with OPEC+ chair Saudi Arabia at the end of last year, when the oil group agreed to a 2 million barrel per day cut until the end of 2023.
Some analysts now warn of prices soaring back towards $100 per barrel in the near term horizon.
It was just a year ago or so that Russia invaded Ukraine and the price of the barrel had extended almost to $130 before tumbling in less than half to a 15 month low.
The anticipated increase in oil prices for the rest of the year as a result of these voluntary cuts could fuel global inflation, prompting a more hawkish stance on interest rate hikes from central banks across the world.
That would, however, lower economic growth and reduce oil demand expansion. All of which supports the idea of a global recession which has been brewing for many years now that continues to be artificially manipulated into not happening.
We’ve gone from unsecured classified documents, to Chinese spy balloons, to a banking crisis, to indicting a past sitting president, to an energy tightening in a matter of just a few weeks.
I can hardly wait for what circus act comes next. In the meanwhile, I’ll be trading to fill the bank account, shopping to fill the essential reserves and buying more ammo…