Summer is around the corner and Americans prepare for their Summer vacation there is something they need to know if they are considering a car trip.
As usual the oil industry will taker advantage of the consumer with higher prices.
Saudi Arabia will reduce how much oil it sends to the global economy, taking a unilateral step to prop up the sagging price of crude after two previous cuts to supply by major producing countries in the OPEC+ alliance failed to push oil higher, the AP reports. The Saudi cut of 1 million barrels per day, to start in July, comes as the other OPEC+ producers agreed in a meeting in Vienna to extend earlier production cuts through next year. Calling the reduction a “lollipop,” Saudi Energy Minister Abdulaziz bin Salman said at a news conference that “we wanted to ice the cake.” He said the cut could be extended and that the group “will do whatever is necessary to bring stability to this market.”
The new cut would likely push up oil prices in the short term, but the impact after that would depend on whether Saudi Arabia decides to extend it, said Jorge Leon, senior vice president of oil markets research at Rystad Energy. The move provides “a price floor because the Saudis can play with the voluntary cut as much as they like,” he said. The slump in oil prices has helped US drivers fill their tanks more cheaply and gave consumers worldwide some relief from inflation. “Gas is not going to become cheaper,” Leon said. ”If anything, it will become marginally more expensive.”
A little FYI for my readers that are planning a road trip this Summer and will be working within a budget then plan on spending more for your gas.
I Read, I Write, You Kbnow
“lego ergo scribo”
We are going back to Lincolnshire with Ollie, only 90 miles north of Beetley. As long as we have a dog, it suits us perfectly. (I haven’t even had a passport since 2016)
Best wishes, Pete.
I travel better in Fall…..my passport has expired and I am too old to use another. chuq
I thought we were oil independent at one point during 2019 and that we were no longer slaves to OPEC — but then a few other facts surfaced — facts such as:
The United States did become energy independent for a brief period of time in 2019. However, this was due to a number of factors, including:
The shale oil boom, which led to a significant increase in domestic oil production.
The decline of oil demand, due to factors such as increased efficiency and the rise of renewable energy.
These factors combined to create a surplus of oil in the global market, which led to lower prices. As a result, the United States was able to export oil for the first time in decades.
However, the situation has since changed. Oil prices have risen due to a number of factors, including:
The COVID-19 pandemic, which led to a sharp decline in demand and a subsequent increase in storage levels.
The war in Ukraine, which has disrupted global oil supplies.
As a result of these factors, the United States is now once again reliant on imports to meet its energy needs. OPEC, which controls a significant share of the global oil market, has been reluctant to increase production in response to the rising prices. This has left the United States at the mercy of OPEC, which could potentially use its market power to raise prices even further.
It is important to note that the United States is still a major producer of oil, and it is possible that it could become energy independent again in the future. However, this would require a number of factors to change, including:
A continued increase in domestic oil production.
A sustained decline in global oil demand.
A change in OPEC’s willingness to increase production.
It is also important to note that energy independence is not the only goal when it comes to energy policy. Other important goals include:
Security of supply.
Environmental protection.
Economic efficiency.
It is possible to achieve all of these goals simultaneously, but it is not always easy. The current situation in the global oil market is a reminder that energy independence is a complex issue with no easy solutions.
Providing military support: The United States provides military support to some OPEC countries, such as Saudi Arabia. This support helps to protect OPEC’s oilfields and pipelines from attack. If the United States were to withdraw its military support, it would make it more difficult for OPEC to protect its oil resources. This could lead to disruptions in oil supplies, which would hurt OPEC’s profits.
Investing in OPEC countries: The United States invests billions of dollars in OPEC countries every year. This investment helps to support OPEC’s economies and to develop its oil resources. If the United States were to reduce its investment in OPEC countries, it would hurt their economies and make it more difficult for them to develop their oil resources. This could lead to disruptions in oil supplies, which would hurt OPEC’s profits.
It is important to note that the United States also does some things for OPEC that benefit both countries. For example, the United States is a major market for OPEC oil, and it provides OPEC with a stable source of income.
I think that if we decided to stop supporting OPEC militarily and if we were to stop buying their damned oil and started drilling for our own again –and if American investors started investing more of their money in The United States than in OPEC, we would see a significant decrease in prices at the pump almost magically!
Lots of info….but we will never see a drop in prices that helps the consumer….just not in the oil industry’s DNA. chuq
I’ll be sticking close to home.
Me as well….thanx for the comment chuq