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Sunday, October 2, 2022


Oil Surges After OPEC+ Shuns Biden, Proposes ‘Output Hike For Ants’

Oil Surges After OPEC+ Shuns Biden, Proposes ‘Output Hike For Ants’

Oil prices are spiking this morning after OPEC+ agreed on a modest 100k barrel/day increase in output for September – considerably less than the 300-400k increase expected by many (and hoped for by President Biden).

This is the smallest increase in output in OPEC history, and couldn’t get smaller without being a cut.

WTI is back above $95 on the news (and Brent is back above $100)…

As Bloomberg’s Javier Blas satirically commented:

“At the current rate, I fear that President Joe Biden consumed more jet-fuel travelling on Air Force One to Jeddah than any extra oil barrels OPEC+ may agree to provide to the market in September.”

OPEC+ has already agreed to return all the supply that it took offline to meet the challenge posed by the pandemic, although several members have struggled to deliver quotas in full, and even Saudi Arabia likely has little in the way of significant spare capacity left to deploy.

Pump prices are set to rise as oil and wholesale gasoline prices have decoupled…

Time for another expensive trip to the Middle East?

This post was originally published on this site

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