Tag: recessions

Saudis say US sought 1 month delay of OPEC+ production cuts

Tina Marie (Ms. Cat)

DUBAI, United Arab Emirates (AP) — Saudi Arabia said Thursday that the U.S. had urged it to postpone a decision by OPEC and its allies — including Russia — to cut oil production by a month. Such a delay could have helped reduce the risk of a spike in gas prices ahead of the U.S. midterm elections next month.

Saudis say US sought 1 month delay of OPEC+ production cuts

Related:

Saudi Arabia Defied U.S. Warnings Ahead of OPEC+ Production Cut

The one-month delay requested by Washington would have meant a production cut made in the days before the election, too late to have much effect on consumers’ wallets ahead of the vote.

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To entice the Saudis to delay their decision, U.S. officials told the kingdom they would buy oil on the market to replenish Washington’s strategic stockpiles if the price of Brent, the main international benchmark, fell to $75 a barrel, according to U.S. officials and people inside the Saudi government.

Quid pro quo, huh?! 🧐💭

White House Leaves Door Open For Additional SPR Releases + It’s Implications

Tina Marie (Ms. Cat)

The White House said on Tuesday that it has many options to counteract OPEC+’s looming production cuts, including the release of even more crude oil from the nation’s Strategic Petroleum Reserves.

White House Leaves Door Open For Additional SPR Releases

Related:

The Implications Of U.S. SPR Withdrawals

Implications of OPEC-+ Production Cut 

I think OPEC has not learned from its past mistakes, as it is not a good time to cut oil production by 2 million bpd in November 2022, especially at a time when global economies are under pressure. While higher oil prices at this juncture may bring much needed oil revenues to (national) oil companies and OPEC members, this will come at the cost of accelerating a global recession, bringing more misery to consumers. Consequently, it will weaken global oil demand and oil prices. Oil prices in the range of $70-$80/bbls at this difficult time could be a win-win situation for both producers and consumers, and shield global economies from collapsing. Consequently, the U.S. should take its own measures to enhance its domestic oil production, encourage EVs and halt further releases of the SPR. Running down the SPR will allow OPEC+ more flexibility to play around with production.

Meanwhile:

U.S. Rig Count Slides Amid Jump In Crude Prices

The Straw That Broke the Camel’s Back: The Best Way to Respond to Saudi Arabia’s Embrace of Putin

Tina Marie (Ms. Cat)2 Comments

The Best Way to Respond to Saudi Arabia’s Embrace of Putin

But this claim is unjustified. OPEC has never cut production in such a record tight market and these production cuts will lead to unsustainably low oil inventories, sending the price of oil skyrocketing out of any “acceptable band.” Furthermore, the G-7 oil price caps plan is not targeted at OPEC; it is strictly limited to Russian oil.

Nor can this Saudi move be justified by the non-existent global recession its leaders cite. Presently markets are very tight, with lush 73 percent profit margins for Saudi Arabia. In other words, there was no immediate need for Saudi Arabia to reduce supply unless they were seeking to harm the U.S. to the benefit of Russia.

Non-existent global recession?!? Low oil inventories?!? Maybe Biden shouldn’t be releasing our oil from the Strategic Petroleum Reserve?! As for never cutting production, before, looks like they have!? 🤷🏼‍♀️

A Ceasefire Can Ensure Ukrainian Independence

Tina Marie (Ms. Cat)2 Comments

A Ceasefire Can Ensure Ukrainian Independence

There is only one way the West can prevent Ukraine from being defeated on the battlefield over the next several months and avoid a nuclear conflict with Russia: a return to diplomacy. President Joe Biden needs to call for an immediate cease-fire and armistice agreement to save Ukraine, ensure its security, and preserve its political and economic independence with control of at least 81 percent of its territory. It is in the U.S. national security interest to have Russia and Ukraine negotiate a permanent cease-fire as soon as possible and avoid potential nuclear escalation. The Biden administration should offer to not implement new economic sanctions against Russia, stop sending more U.S. troops to Eastern Europe, and suspend lethal military assistance to Ukraine in exchange for an immediate and sustained Russian ceasefire. A relaxation of sanctions following a peace deal would provide economic relief to millions of Americans suffering from a recession triggered by Western sanctions against Russia.

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While writing this proposal, one of the provisions of the proposed armistice agreement I included was that Russia would resume natural gas shipments to the European Union via the Nord Stream 1 or Nord Stream 2 pipelines. But on September 27, both of them were severely damaged by acts of sabotage that appear to be retaliation against Russia. It is unclear which country is responsible for damaging the pipelines but reopening them might have saved thousands of Europeans from freezing to death this winter. The day after the pipeline attacks, former President Donald Trump offered to mediate peace talks to end the war in Ukraine out of concern that sabotaging the pipelines might spark “World War III,” particularly if Moscow believed that the United States or another NATO member was responsible.

Hypocrisy(and irony): The man, that the media cried about having his finger on the nuclear button (not to mention his tearing up of nuclear treaties and expanding America’s nuclear arsenal), is the one willing to mediate to prevent WWIII! Meanwhile, Brandon refuses to negotiate and the media cheers on nuclear war?!

Czech people take to the streets in record numbers against Nato’s war in Ukraine

Tina Marie (Ms. Cat)

Czech people take to the streets in record numbers against Nato’s war in Ukraine

On Saturday 3 September, as many as 160,000 protesters (more than double the 70,000 admitted by imperialist media) came out onto the streets in Prague, the capital of the Czech Republic. Their demands were simple: end Czech involvement in the war in Ukraine and restore trade with the Russian Federation to resolve the soaring cost of living.

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The Communist Party of Bohemia and Moravia was one of the few voices from the left that mobilised for the protest, with the party’s former vice-chair and current presidential candidate Josef Skála speaking from its platform and attempting to bring some much-needed socialist understanding to this broad popular movement.

Needless to say, the corporate media has vacillated between ignoring the demonstrators entirely and trying to dismiss them as extremists and ‘Kremlin agents’. The Guardian ran an article characterising the protest as a “coalescence of far-right and extreme left elements”, playing on the threadbare ‘red-brown alliance’ trope so beloved of western anticommunists.

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Seemingly inspired by the Czech example, protests appear to have spread to Austria and Italy. These have been reported by Iran’s Press TV but largely ignored by western imperialist media.