Monday, April 3, 2023

OPEC Announces Oil Production Cuts. Financial Ruin Now A Matter Of Time For the US?

Here Comes The Pain: OPEC Announces Oil Production Cuts. Financial Ruin Now A Matter Of Time For the US




OPEC+, the alliance of oil-producing countries led by Saudi Arabia and Russia, has decided to cut crude oil production by over 1 million barrels per day, starting from May. This decision was announced on Sunday, April 2nd, and it came as a surprise to many. The decision to cut production was unexpected as the market was already experiencing a high degree of volatility and uncertainty.


The United States’ White House responded to this decision by saying that production cuts were not advisable at this time, given the current market uncertainty. The spokesperson added that the US government would continue to work with all producers and consumers to ensure that energy markets support economic growth and lower prices for American consumers.

The decision to cut production has left many wondering who will be the first to cut, OPEC+ or the US Federal Reserve. This question was raised last month, and it has become increasingly relevant as the global economy continues to struggle.


Saudi Arabia has pledged to reduce its own production by 500,000 barrels per day, starting in May and continuing through the end of 2023. Other countries such as Kuwait, the United Arab Emirates, and Algeria have also joined in the reduction efforts. Russia had previously pledged to cut its own crude oil production by 500,000 barrels per day, but it has now extended its pledged cuts through the end of the year.


These reductions in production are expected to have a significant impact on the global oil market, with prices likely to increase as a result. However, the decision by OPEC+ to cut production has been met with mixed reactions, with some analysts arguing that the move will help stabilize prices and support economic growth, while others believe that it could lead to further market volatility.


Russia commented on the announcement of production cuts, stating that the global oil market is currently going through a period of high volatility and unpredictability due to the ongoing banking crisis in the US and Europe, global economic uncertainty, and unpredictable and short-sighted energy policy decisions.



The impact of the decision to cut production on the US economy remains to be seen, but the White House’s response suggests that there are concerns about the potential impact of higher oil prices on American consumers. The US is one of the world’s largest oil consumers, and any significant increase in oil prices could have a negative impact on the country’s economic growth.


In conclusion, OPEC+’s decision to cut crude oil production by over 1 million barrels per day has left many wondering about the impact it will have on the global oil market and the broader economy. While some analysts believe that the move will help stabilize prices and support economic growth, others are concerned that it could lead to further market volatility. Regardless, it is clear that the decision will have significant implications for oil producers and consumers around the world.



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1 comment:

  1. Pray USA gets new Leadership, quality people, and USA produces it's own oil, not that hard; those within our Gov. presently are making it a crisis on purpose, IMO!

    This Nation does not need Saudi, or anyone else oil, we just need new Government or restructuring a weaponized excuse for Gov. gone wild IMO, right!

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