The Briefing Room
General Category => Science, Technology and Knowledge => Energy => Topic started by: mystery-ak on February 21, 2022, 07:51:54 pm
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Oil Soars After Arab Oil Ministers Turn Biden Down Again, Refusing to Open Oil Taps
John Carney 21 Feb 2022
Oil prices climbed on Monday, pushing closer to the $100 barrel threshold after Arab oil producers agreed that oil production should not rise.
The price of Brent, the global standard, rose by nearly 3.34 percent on Monday to $96.64, the highest price since 2014. Many traders believe is very likely to push above $100 a barrel soon.
Over the weekend, ministers from Arab oil-producing nations met in Riyadh to discuss production levels. They said they had agreed that OPEC+ should stick to its current plan to add 400,000 barrels of oil per day. The Organization of of the Petroleum Exporting Countries and allies led by Russia agreed on February 2nd to support a moderate rise in output.
The Biden administration has been pressing U.S. allies in the Arab world to increase production in hopes of holding down fuel prices and perhaps tempering inflation. The price of oil is up more than 24 percent since the start of the year.
Oil prices have seen upward pressure from rising global demand as lockdowns and other restrictive measures aimed at fighting the pandemic have lifted. More recently, tensions between the U.S. and Russia over Ukraine has boosted oil prices.
The Arab ministers say they are wary of increasing production in reaction to geopolitical events, which often only have a temporary effect on prices.
The price of oil fell significantly during the early months of the pandemic, trading as low as $16 a barrel at one point. This has left many oil producers wary that a new wave of infection could once again reduce demand and send prices plunging. As well, many oil producing nations are wary of the Green political projects in the U.S. and Europe that aim to reduce the use of oil.
Natural gas prices have been extremely volatile in recent months. On Monday, natural gas prices rose by more than eight percent.
https://www.breitbart.com/economy/2022/02/21/the-arabs-turn-biden-down-again-refusing-to-open-oil-taps/
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Why should they? Sloe Joe has zero leverage with the Arabs, or anybody else for that matter.
They don't even like him.
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Why should they? Sloe Joe has zero leverage with the Arabs, or anybody else for that matter.
They don't even like him.
The gambit here is to keep the screws on domestic producers and oilfield workers who significantly backed Trump, and who are seriously Conservative. Considering those of Latino and African heritage who have done well in the industry as well, this is a real threat to their narratives, and belies their claims of "racism" in an industry where being competent and capable and willing to work is paramount.
If he can keep the lid on prices, and screw with American Producers, then he can hurt part of America's industry that is most likely to donate to conservative causes, and blame the industry for the prices at the pump and elsewhere, a situation of his own making.
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The gambit here is to keep the screws on domestic producers and oilfield workers who significantly backed Trump, and who are seriously Conservative. Considering those of Latino and African heritage who have done well in the industry as well, this is a real threat to their narratives, and belies their claims of "racism" in an industry where being competent and capable and willing to work is paramount.
If he can keep the lid on prices, and screw with American Producers, then he can hurt part of America's industry that is most likely to donate to conservative causes, and blame the industry for the prices at the pump and elsewhere, a situation of his own making.
I get all that, but I see no reason for the Arabs to let off any pressure. Those are US domestic issues. All the Arabian oil producers want it high-priced oil.
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Maybe Joe should ask Texas, Louisiana, North Dakota, Wyoming, Alaska, etc. to open their taps.
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I get all that, but I see no reason for the Arabs to let off any pressure. Those are US domestic issues. All the Arabian oil producers want it high-priced oil.
Sure they do. It's benefiting producers here who have the leases to drill and the means to get that oil to market. I'm back to work because of it, and may have a little nest egg (again) by the time I have to retire. Thankfully I am reasonably healthy and able to continue. I pray Almighty God grants me that.
As for opening the taps, what's good for the Saudis is good for the American Oil Companies, too. Rigs that spent COVID stacked (fourteen in one drilling company yard outside of town alone) are going back up, (down to five there, now), and people are getting back to work, although not as many are champing at the bit to get back in the field. A year of soft living and the temptations of weed and whatnot make it hard to get off their couches and back in the workforce, especially if they can't pass the test. But that absence of qualified hands keeps some of us working more, which is just as well for me.
Besides, after killing lease sales, pipelines, new methane regs, etc. etc. etc., why should anyone do jack to help a declared enemy of the industry? Yep, it'll hurt for a little while, but if the right people get elected, that could turn around pretty quick.