OPEC has a responsibility to maintain the stability of oil markets. That’s in indirect quote of an EU official by Reuters in a report detailing a meeting between EU representatives and OPEC. It is also the second most charmingly cute attempt at polite pressure I’ve seen in the past year.
Best point in a great piece: "The union plans to be consuming 30% less oil in 2030 than it was consuming in 2015, Reuters recalls in its report on the meeting with OPEC. This is the very opposite of motivational for large oil producers who have already been at the receiving end of enough pressure with regard to future oil demand precisely because of the EU’s lower consumption plans." Well done.
Hit the nail right on the head. The reality is- when you have a strategic advantage, you should extract all the value you possibly can insofar as the net win over time is in your favor. As the US and EU has said “we don’t want your product” … this is the best way to maximize value… notwithstanding there is nothing anyone can actually do on the short term to improve supply other than lifting sanctions on Russia.
So I reckon we have the keep the 5th Fleet there forever to maintain the Petrodollar and avoid having the PLAN or what's left or the RUS "fleet" setting up in Bahrain when we withdraw? Why not coordinate with JPN, ROK, and others to help bear the burden of keeping that open?
Irina, as usual - Fantastic
Thank you, Stu!
Best point in a great piece: "The union plans to be consuming 30% less oil in 2030 than it was consuming in 2015, Reuters recalls in its report on the meeting with OPEC. This is the very opposite of motivational for large oil producers who have already been at the receiving end of enough pressure with regard to future oil demand precisely because of the EU’s lower consumption plans." Well done.
Hit the nail right on the head. The reality is- when you have a strategic advantage, you should extract all the value you possibly can insofar as the net win over time is in your favor. As the US and EU has said “we don’t want your product” … this is the best way to maximize value… notwithstanding there is nothing anyone can actually do on the short term to improve supply other than lifting sanctions on Russia.
The pathetic part is "We don't want your product but we need it, but we'd rather risk riots than admit it."
I've been reading your articles on oilprice.com for some time, but I just today found you on Substack. Brilliant!
Glad to have you here!
So I reckon we have the keep the 5th Fleet there forever to maintain the Petrodollar and avoid having the PLAN or what's left or the RUS "fleet" setting up in Bahrain when we withdraw? Why not coordinate with JPN, ROK, and others to help bear the burden of keeping that open?