What goes down must go up.

[BOHICA]

1.6 m bpd cut has oil prices explode.  The uncertainty of US and Europe banking security has the oil producers cutting back causing oil prices to take a large jump up.

 

Russia’s Deputy Prime Minister Alexander Novak saidthat Russia would cut 500,000 bpd through the end of 2023 to ensure predictability in the global oil market in a period of high volatility and unpredictability due to the ongoing banking crisis in the U.S. and Europe, the global economic uncertainty, and “unpredictable and short-sighted energy policy decisions.”

The meeting, which just days before was expected to be a routine no-news affair, was only routine in acknowledging the cuts announced on Sunday, which sent oil prices rallying by more than 6% early on Monday with WTI Crude topping $80 a barrel again.
 

https://oilprice.com/Energy/Energy-General/OPEC-Panel-Makes-New-Oil-Production-Cuts-Official.html

[Doug]

Word of another Tesla Semi that appears to be broken down on the side of the road is making the rounds on Twitter.

Since Tesla started delivering its long-awaited Class 8 electric truck to customers last month, several of the vehicles have been spotted on the side of the road, apparently broken down. One PepsiCo Tesla was seen getting towed by another truck.

The sightings have called into question the reliability of Tesla's new electric semi, which started production at the company's Nevada manufacturing facility in October after years of delays. The truck was originally supposed to start production in 2019. 

Yet another apparently stranded Tesla Semi was making the rounds on Twitter Thursday.

The video, originally shared on TikTok, appears to be from earlier this month in Modesto, California. 

It's not an encouraging sign for investors already worried about the serious economic headwinds Tesla faces this year, but alarm bells aren't going off quite yet, said Wedbush analyst Dan Ives.

"These are not the images and sights you want to see," Ives said. "But no red flags yet. What will be important to see is how they handle it. Quality control is very important."

Tesla is known for working out kinks after its vehicles make it into customer's hands via over-the-air updates. But the company has had varying degrees of success with this strategy, and faces a federal probe into the self-driving software it updates that way.

Tesla first introduced a Class 8 prototype in 2017, initially setting a production date of December 2019. The program was led by former Daimler executive Jerome Guillen, who left the company in 2021. Following Guillen's departure and a series of supply chain issues, Tesla pushed back the start of Semi production to 2022.

 

[Crnr2Crnr]

just in time for Easter and summer driving, boating and gas guzzling season.

edit:  wait, no one has blamed Biden yet?  

Edited April 3, 2023 by Crnr2Crnr

[airflite1]

8 minutes ago, Crnr2Crnr said:

just in time for Easter and summer driving, boating and gas guzzling season.

edit:  wait, no one has blamed Biden yet?  

That’s because it’s Trumps fault..😂😂😂

[BOHICA]

Spring break is the start of fuel price increases and uses up a lot of fuel.

China is suppose to use a bunch this year as it’s economy with no lock downs comes roaring back.

[Crnr2Crnr]

35 minutes ago, airflite1 said:

That’s because it’s Trumps fault..😂😂😂

most things are...

 

[BOHICA]

"This will create both political waves across Europe and even higher general inflation in the USA, leading to renewed pressure on the Federal Reserve to keep hiking rates aggressively," Clifford Bennett, chief economist at ACY Securities, said in a report.

With an average U.S. price now at roughly $3.50 per gallon of regular, according to AAA, that could mean gasoline over $4 per gallon during the summer.

https://www.cbsnews.com/amp/news/opec-production-cuts-oil-prices/

 

 

[spin_dry]

Russia is cutting production because their oil producing facilities are failing. Some of the well heads in Siberia are closing down. 

[spin_dry]

1 hour ago, BOHICA said:

Spring break is the start of fuel price increases and uses up a lot of fuel.

China is suppose to use a bunch this year as it’s economy with no lock downs comes roaring back.

China’s recovery is showing some signs of trouble. Service sector is opening up, but mfg took a hit last month. 

[ViperGTS/Z1]

Well.....this should be good to let inflation start another uptrend as well. Gonna be fun.. 😊.    All the puzzle pieces are falling into place for a Trump victory in 24....

The floor is still open.. 💰 place your bets...

[BOHICA]

Fill up now and save yourself 30-40 cents a gallon as dwindling gas inventories and opec production cuts influence gas price spike of up to $3.90 a gallon in near term.

https://oilprice.com/Latest-Energy-News/World-News/Get-Ready-For-Higher-Prices-At-The-Pump.html

[spin_dry]

3 minutes ago, BOHICA said:

Fill up now and save yourself 30-40 cents a gallon as dwindling gas inventories and opec production cuts influence gas price spike of up to $3.90 a gallon in near term.

https://oilprice.com/Latest-Energy-News/World-News/Get-Ready-For-Higher-Prices-At-The-Pump.html

Doubtful. The saudis are looking at the banking crisis both here and Europe. Couple that with the feds increasing rates. They perceive a decline in oil demand and they’re probably correct. If they’re wrong, they’ll reverse course. They have no desire to collapse the global economy. Russia on the other is experiencing equipment failures and degradation of equipment. Western engineers have also left the country. 

[BOHICA]

$4 a gallon over summer almost certain at this point?  Fox News thinks so.

 

https://www.foxbusiness.com/economy/gas-prices-4-gallon-after-opec-production-cut.amp

Phil Flynn, a senior analyst at Price Futures Group and FOX Business contributor, said the cuts of up to 1.15 million barrels per day could cause gas prices to rise by at least 26 cents. 

As of Monday, regular gasoline averaged roughly $3.50, according to AAA. If Flynn's prediction holds, it could mean gasoline prices will climb above $4 per gallon as summer nears.

[Matt]

We're already there in Arizona.  I filled up an hour ago at $4.39 and that's the cheapest around by at least 10 cents per gallon.  Going to be another pricey year with the camper.  Interestingly enough, Diesel is also $4.39.  A month ago, the price delta was about $1/gal.

[steve from amherst]

8 minutes ago, Matt said:

We're already there in Arizona.  I filled up an hour ago at $4.39 and that's the cheapest around by at least 10 cents per gallon.  Going to be another pricey year with the camper.  Interestingly enough, Diesel is also $4.39.  A month ago, the price delta was about $1/gal.

Ran about $1.50 a gallon higher for diesel here since last spring, Still is . Although it is still heating season here too.

[Pete]

 Glad it’s going up. It will in turn drive up the price again on EVERYTHING. More rate hikes coming. Good.
 

Biden and the left continue to get pounded like a tent stake in soft sand. 

[Ez ryder]

10 hours ago, spin_dry said:

Russia is cutting production because their oil producing facilities are failing. Some of the well heads in Siberia are closing down. 

Did the ghost of kiev tell you this ? 

Fyi serbia has 7 of its own refinerys 

Edited April 4, 2023 by Ez ryder

[BOHICA]

Asia is accounting for majority of demand growth with China making up 1/2 of the world oil demand growth in 2023 as it comes out of lock downs and its economy grows.

Russia and Asia have a partnership and have taken over the Middle East it appears.  Iraq will no longer allow US oil companies to do business with in its borders.

 

And China is not alone. India has grown to be a factor to reckon with in oil and gas markets as well. With its more than 80-percent dependence on imports of crude to satisfy its domestic demand and a growing population and economy, India is being seen by some as the country that could replace China as the single most important driver of global oil demand in the not-too-distant future.

This year, China is seen to account for about half of global oil demand growth, taking it to a record high of almost 102 million barrels daily. That was according to the January oil market report by the International Energy Agency. In its two subsequent reports, the IEA maintained its stance that China’s post-Covid reopening will drive global oil demand significantly higher.

What all this means is that demand for oil and gas appears set to be rising faster than supply growth. Normally, this would lead to higher prices, which would, in turn, dampen demand, eventually pushing prices lower. But that was when investment in new supply was adequate to demand patterns. Now, things may turn out very differently, with the higher-for-longer price scenario looking like the most likely one.
 

https://oilprice.com/Energy/Crude-Oil/What-Fast-Growing-Oil-Demand-In-Asia-Means-For-The-Rest-Of-The-World.html

Edited April 4, 2023 by BOHICA

[spin_dry]

44 minutes ago, BOHICA said:

Asia is accounting for majority of demand growth with China making up 1/2 of the world oil demand growth in 2023 as it comes out of lock downs and its economy grows.

Russia and Asia have a partnership and have taken over the Middle East it appears.  Iraq will no longer allow US oil companies to do business with in its borders.

 

And China is not alone. India has grown to be a factor to reckon with in oil and gas markets as well. With its more than 80-percent dependence on imports of crude to satisfy its domestic demand and a growing population and economy, India is being seen by some as the country that could replace China as the single most important driver of global oil demand in the not-too-distant future.

This year, China is seen to account for about half of global oil demand growth, taking it to a record high of almost 102 million barrels daily. That was according to the January oil market report by the International Energy Agency. In its two subsequent reports, the IEA maintained its stance that China’s post-Covid reopening will drive global oil demand significantly higher.

What all this means is that demand for oil and gas appears set to be rising faster than supply growth. Normally, this would lead to higher prices, which would, in turn, dampen demand, eventually pushing prices lower. But that was when investment in new supply was adequate to demand patterns. Now, things may turn out very differently, with the higher-for-longer price scenario looking like the most likely one.
 

https://oilprice.com/Energy/Crude-Oil/What-Fast-Growing-Oil-Demand-In-Asia-Means-For-The-Rest-Of-The-World.html

That’s all fine a dandy, but America still has its finger on the nuclear button. Unlike any other industrialized nation, America could decouple from the world’s oil market and become self sufficient. That would send an immediate shock wave across the global market.  

[BOHICA]

1 minute ago, spin_dry said:

That’s all fine a dandy, but America still has its finger on the nuclear button. Unlike any other industrialized nation, America could decouple from the world’s oil market and become self sufficient. That would send an immediate shock wave across the global market.  

The US isn’t going to nationalize its domestic oil companies and production.  Americans will just pay the higher prices which currently is much less than the rest of the civilized world pays.

we are going have been in an extended time of high prices which is going to continue for the foreseeable future with increases as we go.

[spin_dry]

7 minutes ago, BOHICA said:

The US isn’t going to nationalize its domestic oil companies and production.  Americans will just pay the higher prices which currently is much less than the rest of the civilized world pays.

we are going have been in an extended time of high prices which is going to continue for the foreseeable future with increases as we go.

You're probably right as politicians need something to beat one another over the head. They care more about protecting government than us. But if America ever did, the Middle East would be fucked. 

[BOHICA]

Just now, spin_dry said:

You're probably right as politicians need something to beat one another over the head. They care more about protecting government than us. But if America ever did, the Middle East would be fucked. 

I’m right.  US will not nationalize oil.  We hold a very weak position in both influence of countries and oil markets.

[spin_dry]

18 minutes ago, BOHICA said:

I’m right.  US will not nationalize oil.  We hold a very weak position in both influence of countries and oil markets.

The position isn't weak. It constructed internally by politicians. On one hand China needs to import the majority of food, energy, and higher technology. The vast majority of their population lives in extreme poverty. Their citizens can't afford the goods that their industry produces. That means a very fragile position socio-economically. On the other hand oil producing counties have turned into lazy pieces of shit relying totally on what they pull from the ground for income. Basically they're one trick ponies with their citizenry living under extreme authoritarian regimes with religious zealots ready to to undermine government at any time. They make nothing. America holds all the cards. The leader in technology. The leader in production efficiency. The leader in energy efficiency. AND....energy self sufficient. So don't give me this shit about weakness. Oh....I forgot to mention America's military. 

Edited April 4, 2023 by spin_dry

[BOHICA]

27 minutes ago, spin_dry said:

The position isn't weak. It constructed internally by politicians. On one hand China needs to import the majority of food, energy, and higher technology. The vast majority of their population lives in extreme poverty. Their citizens can't afford the goods that their industry produces. That means a very fragile position socio-economically. On the other hand oil producing counties have turned into lazy pieces of shit relying totally on what they pull from the ground for income. Basically they're one trick ponies with their citizenry living under extreme authoritarian regimes with religious zealots ready to to undermine government at any time. They make nothing. America holds all the cards. The leader in technology. The leader in production efficiency. The leader in energy efficiency. AND....energy self sufficient. So don't give me this shit about weakness. Oh....I forgot to mention America's military. 

America is weak on global stage.  While Biden is begging for Saudi to increase oil production the Middle East is forging partner ships with Asia.  China is kicking our ass and turning the world against us.  Look it how much Biden has run our debt up and the upcoming fight isn’t going to go well as we lose more global influence.

G7 can’t hold a candle to the Brics.  Covid reshaped the world powerhouses

[X2700]

https://tradingeconomics.com/china/exports-by-country

By the looks of it china still needs the good old usa!

Lets say we pull our head out of our asses and cut that export by half?

Wheres china going to make that up at?