US Accuses OPEC Of Hiding Spare Capacity

The U.S. State accused OPEC of hiding 1.42 million bpd in spare oil production capacity, S&P Global Platts reports, citing a statement sent to it by the State Department. Citing an OPEC spare capacity estimate from the US Energy Information Administration, State said that Trump administration officials are working with OPEC to produce the spare capacity they are "not deploying." State said that US was "doing its part" to meet rising global demand.

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22 minutes ago, Sofia said:

The U.S. State accused OPEC of hiding 1.42 million bpd in spare oil production capacity, S&P Global Platts reports, citing a statement sent to it by the State Department. Citing an OPEC spare capacity estimate from the US Energy Information Administration, State said that Trump administration officials are working with OPEC to produce the spare capacity they are "not deploying." State said that US was "doing its part" to meet rising global demand.

1. Why should US call the shots? If it wants to have a say, join OPEC!

2. Instead of asking others to up their oil production, why not US do it all? Oops but oil prices are not high enough to make it profitable for that amount of production right? Then why will OPEC do it?

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(edited)

It's not OPEC, it's hedge funds. Kinda bad for all their other investments though because they are basically pushing Emerging Markets into recessions and with the amount of debt EM  have with foreign banks, if they can't pay that back then ALL their investments will tank

Edited by ATK

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22 hours ago, ATK said:

It's not OPEC, it's hedge funds. Kinda bad for all their other investments though because they are basically pushing Emerging Markets into recessions and with the amount of debt EM  have with foreign banks, if they can't pay that back then ALL their investments will tank

I think you can't really fault hedge funds too. They're just market speculators.

All the US has to do is to dump their SPRs over say a 3-month period. Drown the world in oil. Just when OPEC economies seems to be recovering... WHAM back to $30 oil prices again. 

OPEC will be so shocked and broken by oil prices then that it will take decades for investors to regain confidence in the oil sector.

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