Russia rejected its OPEC+ partners' request late last week to further curtail its oil production next month because it understood that doing so would make its American shale rivals more competitive, which would in turn empower the US to continue weaponizing energy for geostrategic ends, thus eventually leading to a dangerous scenario that Moscow might have been powerless to reverse if it didn't act when it finally did....One World
Russia's Rejection Of OPEC+ Was The Result Of Cold Geostrategic Calculations
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4 comments:
So why are the Saudis pumping more oil?
Their warm relationship with their US ally hasn't endeared them to the US shale oil industry. Punishing US producers in order to punish Russian producers is a bad excuse.
These countries behave like criminals with drug addiction. No one can be trusted but all say they are or want to be friends.
The oil people have the cost of their own product in their cost of production... so an oil price decline is just going to decrease the cost of their production... and they will return to profitability...
They’ve been reaping monopoly rent for decades from the rest of us... they can all eat shit for a decade ...
The rest of us will be able to divert expenditures into something else... just like happened back in 2016 when non monopoly production increased and oil fell from $100 to $60...
All that is happening here is more monopoly rent is being removed from the oil price... it’s good news for the non oil people... it increases our terms of trade with the oil people...
Russia is now begging to go back to the original OPEC+ output cut agreement. They're shitting in their pants at the price plunge and ruble collapse and Saudi threats.
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