OPEC and Russia to appease Trump?

Saudi Arabia and Russia are discussing raising OPEC and non-OPEC oil production by some 1 million barrels a day, sources said, while OPEC's chief said a complaint from US President Donald Trump over high prices had triggered the idea of upping output. Looks like Riyadh and Moscow are prepared to ease output cuts to calm consumer worries about supply adequacy

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I guess Trump's tweets are not useless and crude as everyone thinks.

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7 minutes ago, 李伟王芳 said:

Saudi Arabia and Russia are discussing raising OPEC and non-OPEC oil production by some 1 million barrels a day, sources said, while OPEC's chief said a complaint from US President Donald Trump over high prices had triggered the idea of upping output. Looks like Riyadh and Moscow are prepared to ease output cuts to calm consumer worries about supply adequacy

This is why we desperately need energy independence. When OPEC arbitrarily halts production or some despot in the Middle East gets his hand slapped, I get the equivalent of a pay cut.

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7 minutes ago, Meanwhile said:

I guess Trump's tweets are not useless and crude as everyone thinks.

Enough of this, if they can manipulate supply, we need subsidies.

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West Texas Intermediate crude Oil will likely be "range-bound" between US$ 66.50 & US$ 76.50 per 42-gallon bbl. for the foreseeable future. U.S. producers need a US$ 50.00 per bbl price of WTI crude to pay the overhead.

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If the price is high, we should be drilling. Not telling Russia or OPEC to drill

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15 minutes ago, JohnAtronis said:

If the price is high, we should be drilling. Not telling Russia or OPEC to drill

Well, the US is drilling, and is continuing to ramp up oil production. And US oil exports are increasing to new highs. The discount of WTI to Brent is already significant. But the US will be a bit restrained by takeaway capacity. That said, I'm not sure how low we want oil prices to go? Nothing wrong with high oil prices. If shale economics as some suggest are in fact brutal and shale is still not breaking even, the US needs these higher oil prices (actually, they need higher margins between price and cost, but you catch my drift). Technological advances that cut costs are also needed, although much of this work has been done in the last decade, specifically in the last couple of years during lower prices.

Did someone say "subsidies"? We do not allow such dirty words in our community, @JohnAtronis. May we never speak of this again. :)

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7 hours ago, 李伟王芳 said:

Saudi Arabia and Russia are discussing raising OPEC and non-OPEC oil production by some 1 million barrels a day, sources said, while OPEC's chief said a complaint from US President Donald Trump over high prices had triggered the idea of upping output. Looks like Riyadh and Moscow are prepared to ease output cuts to calm consumer worries about supply adequacy

I thinks that OPEC and Russia were previously planning modest increases to meet the summer demand in the West. But, Trump will claim victory on this. That his tweet solved it

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who knowns what his policy will be tomorrow. He might be apologizing to OPEC and Russians. I saw today in news he reached a deal to help ZTE

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In his Twitter messages, Trump blamed Democrats and the Obama administration for allowing ZTE to stay in business before he took office. But the Obama administration took multiple steps to punish the company in the lead up to Trump’s presidency, cracking down on ZTE through the Commerce Department and Justice Department. 

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1 minute ago, Ja’Nako Bezze said:

In his Twitter messages, Trump blamed Democrats and the Obama administration for allowing ZTE to stay in business before he took office. But the Obama administration took multiple steps to punish the company in the lead up to Trump’s presidency, cracking down on ZTE through the Commerce Department and Justice Department. 

2016 is too far behind. He changed his opinion dozen times since last week

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8 hours ago, 李伟王芳 said:

Saudi Arabia and Russia are discussing raising OPEC and non-OPEC oil production by some 1 million barrels a day, sources said, while OPEC's chief said a complaint from US President Donald Trump over high prices had triggered the idea of upping output. Looks like Riyadh and Moscow are prepared to ease output cuts to calm consumer worries about supply adequacy

One thing is for certain, this announcement alone right here (https://www.cnbc.com/2018/05/25/opec-russia-discuss-raising-oil-output-by-about-1-million-barrels-per-day-sources.html), has brought oil prices down $6 dollars in just five days (image from Oilprice.com). As for what will happen come June 22-23, your guess is as good as mine.

 

image.png.610046e5e14381e29b5fef6756779eaf.png

image.thumb.png.e78c223572a08d78d4af43e3eb910634.png
(https://www.reuters.com/article/us-oil-opec-exclusive/opec-russia-prepared-to-raise-oil-output-amid-u-s-pressure-idUSKCN1IQ0Q6)

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