Despite repeated pleas from the U.S. that the Organization of the Petroleum Exporting Countries (OPEC), under the de facto leadership of Saudi Arabia, should not cut its collective crude oil production at its meeting last week it did just that. The White House had made it clear that a cut in crude oil production and the corollary rise in oil prices would lead to three outcomes that it sees as exceptionally dangerous for the world right now.
To punish ally mean democracy
(11-10-2022, 02:28 PM)Niubee Wrote: [ -> ]To punish ally mean democracy
A big bully in the name of democracy
Good opportunity for China to go in!
Can suka suka go around and punish people just because people dun obey their request. Who the fuxk they think they are? Knnahccbai. .....
(11-10-2022, 02:49 PM)Huliwang Wrote: [ -> ]Can suka suka go around and punish people just because people dun obey their request. Who the fuxk they think they are? Knnahccbai. .....
In this world today, there are only three truly independent sovereign nations : USA, China and Russia.
India is half-half.
later winnie the pooh go visit saudi and saudi will sell them oil in rmb. then petrodollar cracked liao
(11-10-2022, 03:34 PM)sogo Wrote: [ -> ]later winnie the pooh go visit saudi and saudi will sell them oil in rmb. then petrodollar cracked liao
Waiting for this to happen. I clap clap clap.
It might well happened. Winnie wanna secure his term then go saudi
High oil price good meh??? It only leads to higher global inflation and more money for those ME countries to finance terrorism.
(11-10-2022, 02:25 PM)lvlrsSTI Wrote: [ -> ]https://oilprice.com/Energy/Energy-Gener...C-Cut.html
Despite the gung-ho headlines, there’s not much going in the article on what US can do to Saudi Arabia. Most of it is just different politicians alternating between whining and shouting revenge.
The only concrete potential measure mentioned is this:
Quote:They added that the Biden administration would consult with Congress on potential measures that would strike at OPEC’s control over oil prices, and this would include a resuscitation of the ‘No Oil Producing or Exporting Cartels’ (NOPEC) bill that would allow the producer group to be sued in U.S. courts for antitrust violations and could see the break up of Saudi Aramco and the reduction in its value to zero.
However there is no elaboration on how Congress simply passing a bill will lead to Saudi Aramco’s break up and becoming a worthless “zero”. As far as Aramco’s assets go, they are all in Saudi Arabia. Oil upstream and downstream technology is also widely possessed by multiple global players so there’s no possibility of a tech gag here either. It is also primary listed on the Saudi stock exchange, so how would some US court decision make Aramco worthless?
In theory it could financially sanction Aramco and stop it from selling oil in USD, but that would harm the USD’s status as an energy anchor immediately. The reality is any of such moves will lead to an immediate pivot of energy trading to CNY / EUR and inflict severe structural damage to the USD hegemony. This is no different from US financially nuking itself.
The last alternative would be to rally the world to ban Saudi oil, but they can’t even do that for Russian oil & gas so the chances of succeeding with Saudi is close to zero. The same old tired crowd of EU27 + 5E + JP countries already paid a heavy price for going along with Russin sanctions and all are in dire state so a repeat with Saudi is not feasible either.
There are also reports of various US officials and congressmen calling for withdrawal of military support to Saudi, that's the fastest way to invite the Chinese in. Chinese arms are already making inroads in the middle east, withdrawing the military and banning arms sale will just end up harming their own weapons manufacturers' interests.
The Arab boys have obviously made a strategic calculation and concluded that US is now unable to offer them security and economic prosperity and also too weak to take any real action against them, so they are making as much of a killing as they can now before the party ends as the world gradually transits to alternative energy sources.