Thursday, November 5, 2020

Will OPEC Do The Unthinkable As Covid-19 Cases Continue To Rise?

OilPrice.com: Rise In COVID Cases May Force OPEC To Do The Unthinkable 

With the most recent round of coronavirus-inspired lockdowns in various parts of the world, OPEC may face its biggest challenge yet: cutting even more production. Would the cartel and its members survive such a decision? 

OPEC originally planned to relax the current round of production cuts starting in January. And for now, that plan still stands. But there has been talk among OPEC members and analysts that it could waylay that plan, extending the cuts beyond January 2021 to some indefinite future date. 

The reason for the possible extension of the current round of cuts is OPEC's view on oil demand, upon which all plans—budgets, production plans, austerity measures—hinge. 

And if the new round of lockdowns in various parts of the world are any indication of future oil demand—and oh, are they ever—OPEC must seriously be considering the possibility that its plans to relax the production cuts should be scrapped. 


WNU Editor: Europe is under lockdown. Covid-19 coronavirus cases are accelerating in the U.S.. This is going to continue well into next year. I would also not be surprised that the first act in a Biden administration will be to institute nationwide lockdowns and restrictions. OPEC will have no choice but to cut production. If not. Oil prices will collapse to amounts that will range from $10 to $20 a barrel. 

4 comments:

B.Poster said...

The lockdowns are a bigger problem than the virus. Like pandemics before this one eventually ends. The most likely end date is late next year. Whereas the detrimental effects of the lockdowns will linger for years if not decades.

If a president Biden issues such an edict, expect court challenges. We would prefer for this not to happen. This is yet more reason to hope Trump can pull this out. Under a second Trump Administration we might be able to avoid these. The lockdowns were the worst mistake we made here.

Anonymous said...

I hope that fool Biden locks America down. It will be the death knell of the Democrat Party.
People are getting tired of being lied to about a cold virus.

if you go to Nature's page on viruses, they run through the 3 theories on how viruses came to be. One is that they originated from people or living things. So you are not going to eliminate viruses with a purported vaccine any more that you will get rid of retrotransposons.

With a vaccine you can suppress the spread of a virus for little while or get rid of it in a geographic region for a time, but you will never eliminate from earth for the rest of history. It is not fucking possible. Get it through your fucking heads.

I think a job replacement program during a lock down is betting on which old person will be the next to die. All the people dying are in nursing homes. The few who are not are statistical outliers.

Anonymous said...


Biden will be a negative for the country in my opinion and the children my generation bore and raised are ignorant in some areas. As a result they, like biden, are not always realistic. Poking at a button on a handheld gadget that can be, and likely is, programed to reflect YOUR desires doesn't mean the forces that run the big show, Mother Nature, other countries, etc.,are as malleable. Consequently America will simply have to endure their ignorance. By the time their screen watching offspring are in charge I will be long gone.
Meanwhile...back at the ranch....

kidd said...

war people war is coming and soon die 4 the glory and its not man fool but the sun