Thursday, March 4, 2021

Will Saudi Arabia And Russia Push Oil Prices To $100/Barrel And Send A Message To The Biden Administration

Mohammad bin Salman and Vladimir Putin have become fast friends. AP PHOTO/NATACHA PISARENKO 

Princeton Energy Advisors: Towards $100 Oil 

WTI stood at $61.50 / barrel when we issued our weekly assessment of EIA oil markets data yesterday. Nevertheless, we stated that, "We might expect WTI at $64 / barrel this time next week, and $65-66 / barrel would not be surprising." We did not need a week. Less than twenty-four hours later, WTI had surged above $64 / barrel. It could well rise far above this level, and with shocking speed. 

Bloomberg notes: 

OPEC+ decided to keep a tight limit on oil production next month, sending prices soaring in a market that had been expecting additional supply. The agreement is a victory for Saudi Arabia, which has consistently pushed to tighten the market. The cartel had been debating whether to restore as much as 1.5 million barrels a day of output. But after being urged to “keep our powder dry” by Saudi Energy Minister Prince Abdulaziz bin Salman, members agreed to hold steady at current levels -- with the exception of modest increases granted to Russia and Kazakhstan. In a briefing after Thursday’s meeting, the prince went one step further by making the kingdom’s additional 1 million barrel-a-day production cut open-ended. He gave no date for phasing out the voluntary reduction and told reporters he is in no hurry to do so. 


WNU Editor: There are probably many in the Biden administration who are hoping for $100/barrel. In their minds this will push the U.S. to find alternative energy sources. But for most Americans a $4 to $5 price for a gallon of gasoline is going to be crippling.

4 comments:

Anonymous said...

" There are probably many in the Biden administration who are hoping for $100/barrel. In their minds..."

In their minds is the key phrase. They could wargame out a scenario with computers much as the Pentagon does with war scenarios. The usual caveat is that war games are models and all models fail at some point in time. All models fail but some are useful yada yada yada.

Things is they are doing the models/wargames in their minds. Those are bound to be accurate.

Maybe the different Fed districts could wargame out $60 or $70 a barrel and compare who consistently has the best answer and then use that model to see what happens with $100

Anonymous said...

The Picture is truly frightening.

Look at the size of those smiles!

Can you imagine a Saudi and American diplomats/leaders smiling so broadly?

Saudi Arabia is not the best ally far from it. But it is better than Pakistan who, we give $ 1+ billion dollars a year. It is better than Pakistan and we need Saudi Arabia if there is a war in Afghanistan or if there is not. Pakistan cannot say the same thing.

So we have these butt munchers, Obama, Joe and their crew, who literally must be feeding each other shit form their asses doing everything they can to make Saudi Arabia n an Chinese and Russian ally when Iran already is a Russian and Chinese ally.

Hitler really fvcked things up in the last 1/2 or 2/3rds of WW2. So much so the British gave up trying to assassinate him. Even Hitler couldn't fuck up this bad. It takes a special kind of stupid to fuck thing as badly as Obama and presidente jill have.


"In their minds this will push the U.S. to find alternative energy sources. "

Only these people could make alternative power detested. People have been looking for alternative power since the 1973 oil embargo and the Jimmy Carter years of Misery. Preppers and others live wind turbines and other alternative energy productions. It should be universally loved. Except when liberals get involved and start using crony capitalism to get rich.

Putting a turbine(s) in the Gulf Stream has been prosed for the last 4 decades.

https://www.forbes.com/sites/scottsnowden/2020/07/08/florida-company-develops-way-to-generate-power-by-harnessing-the-gulf-stream/?sh=1fa52f1248b8

Again Americans are all for alternative power. We just don't to be shoe horned into a dystopian world by a bunch of nut jobs with poly sci and public administration degrees.

copley7 said...

Good bye Joe and the Dems if gas prices jump to that price. They are already in trouble in 2022 and 2024 would be a massacre, even with all their cheating.

Just like Obama did, they will lose congress, senate and lots of governorships and state legislatures..

Anonymous said...

So what Copley? So what? I'm on your side. Wo the Democrats get blown out qt the polls even with all their cheating, but no one goes to jail for it.

The US is a country of 330 million people. Having as many people as you have fingers and toes convicted and tossed away by the DNC for voter fraud is nothing. The number of fraudster convicted and unable to hold office has to approach or be north of 33% or they will keep n doing it. So what if they lose in 2022 and 2024,. They come back in 2026, when interest isn't as high, unless their pecker is put in a door jamb and slammed.

The mother daughter team in Atlanta running fake ballots through the machine got bonuses not jail time. They will be right back to stuffing ballot boxes. This time they will cover the video cameras.

When you are willing to go up to 2 million fraudulent ballots in a state, there is no subterfuge to which they will not stoop.