OPEC+ agrees deep cuts to oil production despite U.S. pressure

[HAIDER]

Get ready, oil price is going up ..

OPEC+ agrees deep cuts to oil production despite U.S. pressure​

Ahmad Ghaddar, Alex Lawler and Rowena Edwards
Tue, October 4, 2022 at 6:02 PM


By Ahmad Ghaddar, Alex Lawler and Rowena Edwards
VIENNA/LONDON (Reuters) - OPEC+ agreed its deepest cuts to oil production since the 2020 COVID pandemic at a Vienna meeting on Wednesday, curbing supply in an already tight market despite pressure from the United States and others to pump more.
The cut could spur a recovery in oil prices that have dropped to about $90 from $120 three months ago on fears of a global economic recession, rising U.S. interest rates and a stronger dollar.
The United States had pushed OPEC not to proceed with the cuts, arguing that fundamentals don't support them, a source familiar with the matter said.

OPEC+ agrees deep oil production cuts, Biden calls it shortsighted

OPEC+ agreed steep oil production cuts on Wednesday, curbing supply in an already tight market, causing one of its biggest clashes with the West as the U.S. administration called the surprise decision shortsighted. OPEC's de-facto leader Saudi Arabia said the cut of 2 million barrels per day...

finance.yahoo.com

 

[Abdul Rehman Majeed]

Get ready, oil price is going up ..

OPEC+ agrees deep cuts to oil production despite U.S. pressure​

Ahmad Ghaddar, Alex Lawler and Rowena Edwards
Tue, October 4, 2022 at 6:02 PM


By Ahmad Ghaddar, Alex Lawler and Rowena Edwards
VIENNA/LONDON (Reuters) - OPEC+ agreed its deepest cuts to oil production since the 2020 COVID pandemic at a Vienna meeting on Wednesday, curbing supply in an already tight market despite pressure from the United States and others to pump more.
The cut could spur a recovery in oil prices that have dropped to about $90 from $120 three months ago on fears of a global economic recession, rising U.S. interest rates and a stronger dollar.
The United States had pushed OPEC not to proceed with the cuts, arguing that fundamentals don't support them, a source familiar with the matter said.

OPEC+ agrees deep oil production cuts, Biden calls it shortsighted

OPEC+ agreed steep oil production cuts on Wednesday, curbing supply in an already tight market, causing one of its biggest clashes with the West as the U.S. administration called the surprise decision shortsighted. OPEC's de-facto leader Saudi Arabia said the cut of 2 million barrels per day...

finance.yahoo.com

Ignore the headline.

High oil prices are good for the US dollar and the US economy.

 

[HAIDER]

Ignore the headline.

High oil prices are good for the US dollar and the US economy.

bad news for Pakistan and 3rd world consumers ..

 

[SoulSpokesman]

@HAIDER

bad news for Pakistan and 3rd world consumers ..

True, Good thing is most of us Third Worlders will be broke in 2-3 months as well as Europe- demand will collapse and so will oil prices.

Regards

 

[Baba_Yaga]

Their greed will wreck several economies and only cause demand for oil to crash soon, will also accelerate move to EVs. We will be losers in the short run, but this dirty cartels end has already begun. They will have plenty of oil with no one to sell to.

 

[HAIDER]

@HAIDER

bad news for Pakistan and 3rd world consumers ..

True, Good thing is most of us Third Worlders will be broke in 2-3 months as well as Europe- demand will collapse and so will oil prices.

Regards

US will provide support prices to EU consumers in winter. It all depends on the Ukraine war. And i doubt Russia will cut its production or obey OPEC's decision.

 

[Sinnerman108]

Get ready, oil price is going up ..

OPEC+ agrees deep cuts to oil production despite U.S. pressure​

Ahmad Ghaddar, Alex Lawler and Rowena Edwards
Tue, October 4, 2022 at 6:02 PM


By Ahmad Ghaddar, Alex Lawler and Rowena Edwards
VIENNA/LONDON (Reuters) - OPEC+ agreed its deepest cuts to oil production since the 2020 COVID pandemic at a Vienna meeting on Wednesday, curbing supply in an already tight market despite pressure from the United States and others to pump more.
The cut could spur a recovery in oil prices that have dropped to about $90 from $120 three months ago on fears of a global economic recession, rising U.S. interest rates and a stronger dollar.
The United States had pushed OPEC not to proceed with the cuts, arguing that fundamentals don't support them, a source familiar with the matter said.

OPEC+ agrees deep oil production cuts, Biden calls it shortsighted

OPEC+ agreed steep oil production cuts on Wednesday, curbing supply in an already tight market, causing one of its biggest clashes with the West as the U.S. administration called the surprise decision shortsighted. OPEC's de-facto leader Saudi Arabia said the cut of 2 million barrels per day...

finance.yahoo.com

and the marine corp will do something about that soon enough.

 

[SoulSpokesman]

@Baba_Yaga

Babaji,

They will have plenty of oil with no one to sell to.

It reminds me of a saying "The Stone Age didn't end because the world ran out of stones"

Regards

 

[pikkuboss]

US will provide support prices to EU consumers in winter. It all depends on the Ukraine war. And i doubt Russia will cut its production or obey OPEC's decision.

Russia is already selling less quantity than before. India is even considering cutting Russia oil purchase due to logistics issue overriding any discount availed. I don't think Russia will cut further.

 

[JohnyD]

this 90usd is actually 120usd for most of the economies due to rampant dollar appreciation since pandemic...its very difficult for developing and under developed countries to bare this burden...i wish this greedy opec countries feel the hit of its own doing sooner than later..

 

[HAIDER]

this 90usd is actually 120usd for most of the economies due to rampant dollar appreciation since pandemic...its very difficult for developing and under developed countries to bare this burden...i wish this greedy opec countries feel the hit of its own doing sooner than later..

Barrel's forecasted price is about 140$ ...

 

[Indos]

this 90usd is actually 120usd for most of the economies due to rampant dollar appreciation since pandemic...its very difficult for developing and under developed countries to bare this burden...i wish this greedy opec countries feel the hit of its own doing sooner than later..

Yup true, but it depends on each developing country currency strength. Overall currency long term strength can be seen on stock market performance since investing in stock market has more long term view than in currency market.

Majority of investors in stock market will see the economy in long term perspective, more analysts are made compared to currency market where news and short term trend become their main drive. In the end, currency will likely reflect each country economic fundamental strength.

Asian Stock market performance 2022 (Jan-October 3, 2022)

IHSG = Indonesian stock market

Indonesian stocks per sector

 

[Indos]

Their greed will wreck several economies and only cause demand for oil to crash soon, will also accelerate move to EVs. We will be losers in the short run, but this dirty cartels end has already begun. They will have plenty of oil with no one to sell to.

I dont think oil will crash, China will likely relax their zero Covid 19 policy, so boost on oil demand will likely to happen next year amid recession which are likely to keep happening in US and Europe for some quarters.

USA also needs to be blamed, particularly for their sanction on Iran and Venezuelan oil export

 

[maithil]

With Dollar galloping and this step, double whammy for every oil buying country. There is no option but to let Venezuela and Iran oil enter market in big way. Saudis need not be cajoled so much.

 

[serenity]

High oil price has always benefited Russia, Iran, and of course other OPEC countries along with to a smaller degree also the US. But mainly the US actually prefers not to have high oil prices due to historically Iran and Russia benefiting too much for US liking. Industrial countries that import oil hate it. Poor countries suffer too but not quite as much as middle income and industrial countries.