OPEC+ will unwind 1.65M bpd cuts, adding 137K bpd in Oct. The move may have limited market impact due to near-full capacity. Saudi Arabia aims to gain market share and strengthen ties with the U.S. amid geopolitical shifts. https://starfeu.com/
OPEC+ will unwind 1.65M bpd cuts, adding 137K bpd in Oct
byu/StarFEU-Commodity inenergy
Posted by StarFEU-Commodity
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The US gets to fill up its oil reserves again since the pandemic, but at what cost? To what purpose?
War is expensive because it requires **a lot** of fuel. Fuel will now be cheap. The Venezuelan invasion will come at a lower cost… for the US Army.
US oil companies and refineries, in the meantime, are going to be able to breathe, since they’ve been operating over-capacity for more than 3 years. However, this means their operations will become more expensive and their margins will shrink with the WTI. This comes at a really terrible time since a recession is kicking in. They are going to miss their quarterly targets and their stock will be under pressure.
They only agree to this with the promise of gaining access to Venezuelan oil, which in turn might drive up their stock price. Small and medium-sized producers will declare bankruptcy in record numbers, and Big Oil will become even bigger. The US might even part-take in acquisitions like they did with Intel. If a Democrat did this they would call it socialism.
The Venezuelan invasion is an act of despair. If they fail, or if the conflict drags on for as long as Ukraine, the US economy will implode.