'Biden’s Blunder Could Send Oil Prices To $100' (link)

Cosmos

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May 29, 2001
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Energy analysts warned that a release of SPR may not have the desired effect. They explained that however many barrels the U.S. or its partners in Asia and the UK release, OPEC could withhold more and for longer. They explained that the SPR crude is sour, and refiners don't like it because it needs additional processing to reduce the sulfur content—a process that requires natural gas, which is also expensive currently. These explanations fell on deaf but determined ears. Now, analysts are warning about $100 Brent.

"It's not going to work simply because the strategic petroleum reserve — any country's strategic petroleum reserve is not there to try to manipulate price," said Stephen Schork, editor of the Schork Report, speaking to CNBC earlier this week. "There's a considerable amount of bets out there that we will see $100 a barrel oil," he added.

John Kilduff of Again Capital put it even more bluntly: "The battle lines are being drawn," he told Bloomberg this week. "Certainly, OPEC and the Saudis can win this in that they are holding all the cards. They can keep more oil off the market than a SPR release can put on the market. If you see WTI get under $70, then I would expect a response from OPEC+."

OPEC alone accounts for 40 percent of global crude oil production. The U.S.—the world's largest single producer—accounts for about 18.6 percent. And then there's Russia, with about 12 percent of global oil supply, which is a partner of OPEC. So, together, OPEC and Russia, without even counting the Central Asian producers, account for half the world's oil production. They are, indeed, holding all the cards.


 

junior1

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May 29, 2001
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Energy analysts warned that a release of SPR may not have the desired effect. They explained that however many barrels the U.S. or its partners in Asia and the UK release, OPEC could withhold more and for longer. They explained that the SPR crude is sour, and refiners don't like it because it needs additional processing to reduce the sulfur content—a process that requires natural gas, which is also expensive currently. These explanations fell on deaf but determined ears. Now, analysts are warning about $100 Brent.

"It's not going to work simply because the strategic petroleum reserve — any country's strategic petroleum reserve is not there to try to manipulate price," said Stephen Schork, editor of the Schork Report, speaking to CNBC earlier this week. "There's a considerable amount of bets out there that we will see $100 a barrel oil," he added.

John Kilduff of Again Capital put it even more bluntly: "The battle lines are being drawn," he told Bloomberg this week. "Certainly, OPEC and the Saudis can win this in that they are holding all the cards. They can keep more oil off the market than a SPR release can put on the market. If you see WTI get under $70, then I would expect a response from OPEC+."

OPEC alone accounts for 40 percent of global crude oil production. The U.S.—the world's largest single producer—accounts for about 18.6 percent. And then there's Russia, with about 12 percent of global oil supply, which is a partner of OPEC. So, together, OPEC and Russia, without even counting the Central Asian producers, account for half the world's oil production. They are, indeed, holding all the cards.


Aren't there any more pipelines to shut down, or regulations to limit drilling? Surely that would bring prices down! That seems to be the Biden economic theory. According to jen, it's u just and unfair for companies to raise prices..she needs to lecture opec
 
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BW Lion

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Apr 9, 2020
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Two beautiful charts that sum up just one of Biden's (Obama's really ;)) blunders. You Libtards, especially on the East and West Coasts, fully deserve what you are paying per gallon. If you don't want pipelines or refineries in your hood, just pay the piper. Peace Out✌️👌

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