Timothy Nelson5 said:The thing is, the Saudis were being pretty calculating here. They didn't bump up production, and instead, they signaled they’d try to keep prices from spiraling out of control.
https://www.statista.com/statistics/...de-oil-prices/
Looking at this graph, it seems like they were just looking out for themselves. They kept production intentionally low enough to create market uncertainty, which basically lets speculators drive prices through the roof.
If they had actually stepped up and said they'd maximize production to stabilize things, we probably wouldn't be seeing this kind of volatility at all. I guess.
That announcement about cutting back comes because people were talking about a recession, orders dropping from China, and wanting to stop a price collapse.
November 10.45 million
The reason behind it is that the USA increased their own production:
https://tradingeconomics.com/united-...20expectations.
And everyone else was doing as much as they possibly could, too.
It feels especially wrong when you see various European Union politicians and Putin-like mercenaries blaming the USA instead of Saudi Arabia.
Joe Biden asked for 12 million a day, but he was told it wasn't necessary—meaning prices would drop, so the Arabs were right.
Maybe senile Biden is the main culprit for this whole mess, including the war in Ukraine. It’s him and his clueless cronies, their Green New Deal, and the veto on the Keystone pipeline and fracking on federal land.
If a nationalist like Donald Trump had stayed in office, US fracking might have climbed to 16-17 MBBL/d—at least according to projections—and maybe Vladimir Putin wouldn't have had the nerve to gamble on a war under those circumstances.
I’m almost certain prices would be under $60 if Americans weren't filling up the reserves.
But what would be so bad about that? I mean, really.
The fact that energy prices went crazy during the first six months is exactly what allowed Russia to fund the war in Ukraine.
If the world had been more united, and if everyone who could have increased production had done so to steady the market, prices wouldn't have spiked. If that happened, the sanctions against Russia and the limits on their oil and gas prices would have been even more intense.
Russia would have run out of war money much sooner, and maybe we'd already be negotiating a lasting peace.
With 100,000 fewer dead.
And yeah—anyone can reasonably argue that it's perfectly fine for Saudi Arabia to look out for its own interests.
That’s exactly right.
But honestly, when that Iranian terrorist regime eventually goes after those Saudi refineries or tankers, they shouldn't be looking to Uncle Sam or the West to come running to defend a feudal monarchy.
Maybe some new president—someone other than this senile Biden—could just tell the Saudis, "Look, back when we actually needed you to cooperate and help us out, you basically screwed us over just to stack your own cash."
"Because of that, we had to dump hundreds of billions in military aid into Ukraine, and frankly, we don't have the desire or the capacity to keep propping you guys up anymore."
"Since you made your money, you can go ahead and buy your own high-end, battle-tested American hardware—the kind that’s already proven its worth in the war in Ukraine."
☕
The US is still going to step in and help, though. If they don't, they risk losing an ally that—even if they are unreliable—is still pretty much indispensable.
Otherwise, the Saudi people would probably just turn toward the Russians.
I honestly think the US and Europe need to find a whole new way to handle energy so we aren't stuck relying on Saudi Arabia.
It might sound like a pipe dream, but electric cars feel like the future if we ever want to stop being dependent on foreign energy sources.
I was reading recently that some car manufacturers are starting to bundle magnesium batteries with their vehicles because they're safer... now the big question is, will they actually be cheaper to make and easier to get a hold of?