Biden’s juxtoposition

I’m always entertained by these stories.

https://www.bloomberg.com/news/articles/2021-11-03/opec-heads-for-geopolitical-showdown-as-biden-demands-more-oil?sref=qLOW1ygh

Firstly, the United States isn’t part of OPEC.

When you’re not a member of a member based organisation, how can you expect to have your requests (demands) actioned?

Secondly, the irony of Biden asking OPEC to pump more oil (so to ease U.S. domestic gasoline prices) while he is attending COP26 in Glasgow is comical.

Thirdly, he seems to be targeting blame at the Saudi’s for not increasing their output. There are other nations which make up OPEC and OPEC+.

Biden is proving to be a poor manager of geopolitical nuances.

But there any many more angles to this story;

Imagine if the U.S. was still a net exporter of oil?

A lower oil price may make their shale market uneconomical?

The U.S. can always lift sanctions on Iranian oil, allowing it to hit the market?

p.s. In my view, the decline in Crude was expected once OPEC said they won’t be increasing output. Why? Because, we will be closer to output being increased at the next meeting……Markets price in the probability of next move quickly.

#oil

November 5, 2021

by Rob Zdravevski

rob@karriasset.com.au