urbanotter said:The sanctions placed on Russia aren't the only ones that have ended up hurting the West.
When we imposed embargoes on Venezuela, it left their oil facilities in such terrible technical shape
that even if Venezuela wanted to ramp up production right now, they simply couldn't—not until the entire system is overhauled and brought back to a state where increasing output is even possible.
We saw the exact same pattern with Iran; under the weight of sanctions, they haven't been able to expand their capacity.
And let's be honest, Trump's unilateral decision to tear up the Iran nuclear deal certainly didn't help Iran find ways to increase production either.
Then there is Biden's ban on selling weapons to the Saudis because of the war in Yemen, which led the Saudi prince Mohammed bin Salman to essentially ignore Biden. They can't even settle on a date for Biden to visit Saudi Arabia to plead with the crown prince to meet the American demand for increased production.
That prince recently remarked that he puts more faith in Putin's word, since he has consistently honored his agreements, whereas he doesn't trust the Americans—even when they sign formal treaties, they seem to look for any loophole to walk away whenever it no longer serves their interests.
Consequently, the chances of increasing production to boost supply and lower crude oil prices are slim to none.
The US is self-sufficient in oil production, and frankly, current prices suit them just fine because they allow them to maintain expensive production through fracking techniques.
The real issue arises when the companies owning these reserves export the oil to Europe if the payoff is better there than it is domestically.
In years past, when prices climbed, these companies would immediately start drilling new wells.
But that practice has stalled; they aren't opening new wells even when prices look favorable.
The reason is simple: drilling requires massive capital investment, and with prices being so volatile, they fear that if oil prices drop, those investments won't ever pay off.
All in all, the outlook isn't exactly bright for the West regarding an increase in oil production that would result in lower market prices.
Nsi that little guy doesn't care about Biden, so I suppose we shouldn't be surprised if he spends his time talking to ghosts instead.
You could have heard all of this today during a ten-minute segment featuring analyst Maria Gatara in conversation with Željko Kardum.
At this point, it feels like sanctions are becoming less of a strategic tool and more of a shot in the foot.
To really get the issue, you have to put yourself in those shoes. Say I run a shop ten feet away from yours. But for reasons only I know, every single time you walk in, I bring up your wife. 😁Because of that, you aren't going to shop with me anymore; you'll just go to the shop a hundred feet away instead. You wouldn't call that a shot to your own foot, would you?