OPEC panicking as hard-won global production cut fails to arrest oil price decrease

Singularity

Moderator
Oct 2009
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Kansas
If it gets into the 30s and stays there for more than a brief period of time, we will have an official crash on our hands.

If you are celebrating bad news for OPEC --- well, I get that, I really do, fuck OPEC. But don't, at least because if things remain this way Venezuela has no hope at all even if they somehow get rid of Maduro (a very, very tall order). And that's going to mean a whole fucking lot of refugees in due time, and there's this thing about the Caribbean, it's calm and warm, a hell of a lot easier to cross than the Med even on a bad day. You thought Cubans going for feet dry was bad?

It's also not good news for our energy sector, which is still in a situation where domestic production is only sensible in the long run if the price is $50 or higher because of extra extraction and refinement costs. More pipelines will do nothing to assuage this situation, transport via pipe or train or tanker has always been the cheapest cost except for light, sweet crude we've already extracted completely from places where it's easy to get. There's a domino effect involved here. A lame energy sector hamstrings everyone but utilities, airlines, truckers et al. If you got money, use this fall to go somewhere after the artificial price gouge of midsummer.

I'm not sure what comes next. I'm a little nervous, both because it seems like a really severe problem and I don't think anyone DC has any ideas.
 
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