Why didn't the production cuts excite the crude oil markets?

[hemanthaa@mail.com + 64]

The OPEC+ failed to push the oil price up by the measure that they classified as 'precautionary'. As the initial puff died down on Monday morning, the prices were back in the static territory, hardly recording a move in any direction. 

The 'precautionary measure', the term coined by the Saudis,  stemmed from the Chinese manufacturing data that was released 24 hours earlier; up until Sunday evening, the position of the OPEC+ had been sticking to the production targets agreed upon last year by the members.

As for the US, although the move appeared to be yet another embarrassment on diplomatic front initially, spearheaded by the old ally, Saudi Arabia,  the failure to shoring up prices may have come as a welcome relief for the Biden administration - as the days wore on.

The other developments in the region, including the growing ties between Iran and its regional foe, Saudi Arabia, however, appeared to have caused significant anxiety in the corridors of power in the US. The Freudian slip of Senator Marco Rubio on so-called de-dollarization attempts by the nations that fell out with the US in a television interview, in this context, is not something to be dismissed as trivial, especially when such moves are not far from the nation's doorstep.

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Edited April 6, 2023 by hemanthaa@mail.com
Typo

[notsonice + 1,068]

On 4/6/2023 at 1:31 PM, hemanthaa@mail.com said:

The OPEC+ failed to push the oil price up by the measure that they classified as 'precautionary'. As the initial puff died down on Monday morning, the prices were back in the static territory, hardly recording a move in any direction. 

The 'precautionary measure', the term coined by the Saudis,  stemmed from the Chinese manufacturing data that was released 24 hours earlier; up until Sunday evening, the position of the OPEC+ had been sticking to the production targets agreed upon last year by the members.

As for the US, although the move appeared to be yet another embarrassment on diplomatic front initially, spearheaded by the old ally, Saudi Arabia,  the failure to shoring up prices may have come as a welcome relief for the Biden administration - as the days wore on.

The other developments in the region, including the growing ties between Iran and its regional foe, Saudi Arabia, however, appeared to have caused significant anxiety in the corridors of power in the US. The Freudian slip of Senator Marco Rubio on so-called de-dollarization attempts by the nations that fell out with the US in a television interview, in this context, is not something to be dismissed as trivial, especially when such moves are not far from the nation's doorstep.

Please click here for more on this:

 

 

 

Why didn't the production cuts excite the crude oil markets?....

Pretty simple....The Fed is in charge not OPEC

OPEC is trying to stop the increase in inventories....they are unable to stimulate both short term or long term demand...

$80 average Brent is the best that OPEC can expect in 2023 

the short term bump to $85 Brent on the OPEC production cut announcement is already eroding back to $80

Sleepy Joes SPR releases of 2022 and the Congress mandated sales in 2023 are insuring a $75 to 80 Brent average in 2023.....and cemented in place by the rapid expansion in EV production....The Fed is making sure their is no short-term demand increase.....

OPEC can only react to oversupply.

Complete failure, to materialize, in  the IEA projected 2023 demand increase.

 

The markets are not buying the OPEC attempt to raise prices 

 

Edited April 11, 2023 by notsonice