Posted on 08/13/2018 6:33:23 AM PDT by robowombat
SAUDI Arabia has scaled back its rate of oil production just one month after the Organisation of the Petroleum Exporting Countries (OPEC) agreed to increase their output.
OPEC member Saudi Arabia announced it had cut its oil output by an average of 200,000 barrels per day last month - a move designed to increase demand in an increasingly chaotic oil industry.
The US is burying Iran under increasingly harsh sanctions with the aim of reducing their oil exports to nil, while Venezuela, another major oil-exporting country, has also seen its output drop due to economic instability.
OPEC said in its monthly report it was pleased with the “currently trajectory” of oil prices.
They said: “Compared to a year earlier, there has been an overall improvement in crude oil prices in 2018.
“At the same time, product prices have generally followed the upward trajectory of crude oil prices."
It comes after US oil prices fell today, with Brent crude off 25 cents at $72.56 a barrel and US crude 21 cents lower at $67.43.
(Excerpt) Read more at express.co.uk ...
I'm not, they are going up instead of down.
What happens to OPEC when the US produces more than all of them combined?
Don’t think it won’t happen.
There is a stupid expectation that the global supply of oil can somehow be balanced on the head of a pin or there will be a price destroying glut or a self destructive run op in prices.
Best thing that could ever happen is to destroy futures trading speculation.
May not be good for UK and Western Europe idiocy and miscalculation.
U.S. Oil must see higher prices.
Oil prices, crisis, from the country that led to ISIS.
Cutting production does not increase demand. What it is supposed to do is bring supply down closer to demand - at least temporarily.
Cutting supply too much thus raising prices beyond what users are willing to pay will decrease demand bringing the ratio back into line.
This crap of governments trying to micro manage supply/demand of goods and services creates chaos.
So, we are trying to deal the Iranian regime, a mortal enemy of the Saudis, a death-blow by choking off their oil exports, and the Saudis repay us by lowering production to increase their profit at our expense! With “friends” like that....
Also.. what about the DOE ( Dept of Energy ) which was established under President Jimmy Carter back in the 1970's.
The purpose of the DOE was to help ween America OFF of Foreign oil.
The DOE now some 40 plus years later is a multi-BILLIONS of dollars agency and has accomplished NOTHING in terms of accomplishing its goal.
In fact the DOE is a tool of lobbyists who control oil prices.
And commiefornia gas prices are still hovering around 3.50 to 4 bucks a gallon. AvGas is 5.50! No relief here.
It already does.
The World’s Top Oil Producers of 2017:
United States. The United States is the top oil-producing country in the world, with an average of 14.86 million b/d, which accounts for 15.3% of the world’s production. ...
Saudi Arabia. ...
Russia. ...
China. ...
Canada...
We are also the largest selling source for natural gas in the world.
And our biggest importer of oil is Canada, so we are in control of a majority of the world’s oil and natural gas needs. It’s been this way for years. This is why the libs are trying to stop it as it places the US in more control if we used it. ANWR is a perfect example of this. We harvest oil in about 1.5 million acres of the refuge. That is just under 8% of the refuge. And the rest of the country, in the lower 48, is being drilled and we haven’t made a dent in that reserve yet.
In Florida alone, it was estimated that there is enough oil under the state and surrounding waters to handle all of the US consumption, at current rates, by itself for the many years. (If we don’t sell more it for financial or political purposes which is being done now especially in ANWR oil). Florida has no major refineries so they ship it out for that. The two largest refinery areas are Louisiana and Texas.
And I haven’t even approached the Texas output and the oil and natural gas sitting under the Rockies in what has been considered the largest of the finds in the US in history. And we haven’t tapped it yet.
The US is not dependent upon foreign oil. Foreign oil countries are dependent upon our buying theirs enough to keep them fed. You can’t eat oil and the only other thing they seem to grow there is dope. If we actually went head long into drilling, we’d break the rest of the world with our capacities. And that is the real issue.
rwood
I know all that. I said combined. When the US is bigger than all of OPEC. Before it happens, OPEC will be fractured.
Trump opened up US oil.
Estimated total according to USGS is 3 Trillion barrels.
With 1 Trillion recoverable with today's technology
Did I mention that the known total worldwide oil reserves are about 1 trillion barrels
Seems the US just doubled it
More WIN
Every OPEC member cheats on their agreements, so these announcements mean nothing.
Sorry, misunderstood.
But an interesting piece of this puzzle is that OPEC is not just the middle east. It also includes countries in South American like Venezuela and Ecuador, and countries in the middle east that would just as soon invade their neighbors if they thought they could get a slam dunk. My confusion is based upon this as they will never get together with their differences in religious, financial capacity, populations, and how much support they are getting from someone other than third world countries for the basics. Let’s face it, they don’t like each other at all and I don’t see any cooperation between many of them very soon.
rwood
I agree and the US is finally in a position to foment that.
Won’t happen. Petroleum is not a commodity, it is a tool to try to placade the third world countries who have nothing but oil and gas. They don’t have much else so buying their oil is a way to keep them from looking next door at neighbors and going after things they think they need, like food and water. Hence the oil for food program at the UN. And back to Lazlo. So if we actually produce the possibilities we have, it will quite definitely start wars in the middle east. And some of those people have nuclear capacity but lack the common sense to control them properly. Imagine the ramifications?
rwood
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