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OPEC+ announces surprise oil output cuts
- exabrial 4y agoJust in time for summer demand, hopefully enough to further destabilize Russia’s economy
- selivanovp 4y agoRussia will get more money due to this decision.
- exabrial 4y agoAh, When they say cuts, it’s cuts in production, too raise prices, is what You’re saying
- selivanovp 4y agoYes, OPEC+ members gonna produce less and get paid more for their product.
- ROTMetro 4y agoOPEC+ members are hoping that all members keep their word and produce less and hoping to get paid more for their product. Fixed that for you.
- csmpltn 4y agoThis will cause inflation rates in the West to increase (double?) - leading to higher interest rates, economical stagnation, layoffs, more poverty, etc. Unless the US covers up for it, undercutting OPEC+. Seems unlikely to happen.
- selivanovp 4y agoWell, USA still has half of its strategic oil reserves. Looks like OPEC want USA and EU to stop their price cap games or face reserves depletion in attempts to keep prices low.
- qeternity 4y agoThe SPR is incredibly tiny and has almost no impact on global prices. The US is just draining itself of a strategic military asset.
- upsidesinclude 4y agoThe Biden administration is draining the US of a military asset for political points.
- wefarrell 4y agoIt's not a military asset. Situations like these are exactly why it was created.
- shagie 4y agohttps://www.energy.gov/ceser/articles/doe-awards-fy23-congressionally-mandated-sale-crude-oil-strategic-petroleum-reserve https://www.energy.gov/ceser/articles/doe-awards-fy23-congre... > Washington, D.C. – Today, the U.S. Department of Energy’s (DOE) Office of Petroleum Reserves announced that contracts have been awarded for the purchase of crude oil from the Strategic Petroleum Reserve (SPR) to meet its Congressional obligation to sell 26 million barrels in Fiscal Year 2023. The awards follow the Notice of Sale announced on February 13, 2023. These contract awards complete the mandated sale set forth in section 403 of the Bipartisan Budget Act of 2015 and section 32204 of the Fixing America’s Surface Transportation Act. In particular, note the mandated sales. https://www.eia.gov/todayinenergy/detail.php?id=29692 https://www.eia.gov/todayinenergy/detail.php?id=29692 Several recent acts of Congress have authorized sales from the SPR: The Bipartisan Budget Act (Section 404), enacted in 2015, includes authorization for funding an SPR modernization program to support improvements deemed necessary to preserve the long-term integrity and utility of SPR's infrastructure by selling up to $2 billion worth of SPR crude oil in fiscal years 2017 through 2020. Although the estimated volumes presented in the chart above are based on an assumed oil price of $50 per barrel, the actual final sales volumes will depend on how SPR decides to allocate the sales volumes across those fiscal years and the actual price of crude oil at the time of the sales. For the Section 404 sales, SPR must get an appropriation from Congress to approve its requested sales revenue target. Another section of the Bipartisan Budget Act (Section 403) mandates SPR crude oil sales for fiscal years 2018 through 2025 on a volumetric basis, rather than on a dollar basis, as specified in Section 404. The revenues from sales authorized under section 403 will be deposited into the general fund of the U.S. Department of the Treasury. The 21st Century Cures Act, enacted in December 2016, calls for the sale of 25 million barrels of SPR crude oil for fiscal years 2017 through 2019. The first portion of these sales is expected in late spring 2017. The Fixing America’s Surface Transportation Act, enacted in December 2015, calls for SPR sales totaling 66 million barrels from fiscal years 2023 through 2025. --- If these are military assets, then that congressional mandate in 2015 was ill advised. https://www.govinfo.gov/content/pkg/COMPS-11720/pdf/COMPS-11720.pdf https://www.govinfo.gov/content/pkg/COMPS-11720/pdf/COMPS-11... The US was a founding member of the International Energy Program which has the mission described: https://www.iea.org/reports/oil-security-toolkit https://www.iea.org/reports/oil-security-toolkit > The establishment of an emergency oil response system is a core commitment that each IEA Member country has taken when signing the IEA’s founding treaty, the Agreement on an International Energy Program (IEP). This includes ensuring oil stock levels equivalent to no less than 90 days of net imports and to be ready to collectively respond to severe supply disruptions affecting the global oil market. > IEA Member countries have substantial flexibility in how they meet the stockholding obligation, which allows each country to establish an emergency response system most appropriate to their domestic circumstances, taking into account the country’s oil market structure, political institutions, and overall energy system. Oil security legislation, including regulations and response plans, is one of the primary components of an effective emergency response system. The particular nature of the oil security legislation will vary from one country to another depending on country’s policies and choice of stockholding model. This is for the stability of the economy - not the military. https://www.iea.org/articles/united-states-legislation-on-oil-security https://www.iea.org/articles/united-states-legislation-on-oi... > In the wake of the 1973-74 oil crisis, the United States (US) Congress enacted the Energy Supply and Environmental Coordination Act of 1974 (ESECA) and the more comprehensive Energy Policy and Conservation Act of 1975 (EPCA) with the specific aims to fulfil the US’s obligations under the International Energy Programme (IEP), to provide for the creation of a Strategic Petroleum Reserve (SPR), to conserve energy supplies, to provide for improved energy efficiency, to provide a means for verification of energy data, and to conserve water by improving water efficiency of certain plumbing products and appliances (EPCA section 2). > ... > According to section 3(8)(A-C) of EPCA, a “severe energy supply interruption” exists when there is a national energy supply shortage which the President determines (a) is, or is likely to be, of significant scope and duration, and of an emergency nature, (b) may cause major adverse impact on national safety or the national economy, and (c) results, or is likely to result, from (i) an interruption in the supply of imported petroleum product, (ii) an interruption in the supply of domestic petroleum products, or (iii) sabotage, an act of terrorism, or an act of God.
- sys_64738 4y agoThis implies that they can be trusted. Usually they double cross each other by selling on the side.
- jacooper 4y agoThey don't.
- tomohelix 4y agoAh, I see why gas went up in prices now. It looks to me OPEC has always been making decisions that negatively affect the US/Western economy? Or maybe only the bad news get the attention? Anyway, oil and gas should just die out. This is literally monopolistic behaviors.
- selivanovp 4y agoIf you haven’t noticed, for a year already USA and EU are trying to create a buyers cartel and force oil/gas producing countries to sell them their product for the money USA and EU dictates.
- albertopv 4y agoSomething that didn't exist before Russia invasion of another european country. It's just self defense, while OPEC made hundreds of billions last two years. OPEC is de facto supporting Russia. The sooner we ditch oil and gas, the better.
- selivanovp 4y ago[flagged]
- dogma1138 4y agoThat isn’t true and even if it was there is nothing wrong with that.
- qeternity 4y ago> Ah, I see why gas went up in prices now. They literally just announced. Markets aren't even open. I highly doubt pump prices have reacted to this.
- coliveira 4y agoPowerful market participants have their own way to see where things are going and act accordingly. I wouldn't be surprised if some traders knew this decision was coming.
- ZoomerCretin 4y agoThe transition to renewable energy cannot come soon enough. Why we allow our economy to be held hostage to foreign dictatorships is beyond me.
- qeternity 4y agoThe US has been a net exporter of oil for a few years now.
- 11235813213455 4y agohold my bicycle
- csmpltn 4y ago> "The transition to renewable energy cannot come soon enough." It's going to take decades for that transition to complete. What do you do when people's pensions aren't enough to live off of (due to inflation) until then? There are generations of people that won't ever get to own property due to economies stagnating.
- bandushrew 4y agoWhich is why we should start now, surely? The best time to start was 20 years ago, the next best time is to start today.
- hkt 4y agoRenewable energy is energy independence. We need to wean ourselves off any dependence on countries like the ones in OPEC(+).
- newsclues 4y agoWhere does the technology and resources for renewable energy come from to be truly independent?
- Traubenfuchs 4y agoHow does this not break cartel/monopoly/price fixing laws?
- erulabs 4y agoOPEC is a consortium of nations. What law would they follow?
- coliveira 4y agoOPEC is a cartel, they openly say this and determine production quotes. There is no law that will stop them from doing that.
- ImHereToVote 4y agoLaws are enforced by violence. No violence, no law.
- pastacacioepepe 4y agoWhat laws? USA or European laws have no effect on OPEC+ countries.
- jacooper 4y agoDon't like it? Don't buy their oil!
- josephcsible 4y agoCountries in OPEC+ tend to not really care about little things like the rule of law.
- ihalip 4y agoMaybe you should sue them at your local court. That'll show them!
- megablast 4y agoThis is good news, the higher the price of gas, the less people killed by cars, the less pollution released into the world, also saving lives.
- bennysonething 4y agoAnd the higher prices of food mean more poor people will starve to death. Oil is not only an input in creating fertilizer, but just about everything else that goes into getting calories on to your plate. For a great summary of all of this I'd highly recommend reading "how the world really works" https://www.amazon.co.uk/How-World-Really-Works-Scientists/dp/0241454395 https://www.amazon.co.uk/How-World-Really-Works-Scientists/d...
- moffkalast 4y agoWelp, seems like OPEC is joining Putin on the list of entities doing most to combat climate change lol.
- 1970-01-01 4y agoCongratulations, we're (unofficially) beyond peak oil! Now go buy an EV, heat pump, solar system, and plant a tree or something. Also, recycle more and eat less cow.