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oil prices surges 10% after OPEC agrees output cut

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1

1st Course

Member
First output cut since 2008.

Oil shot up over 10 percent after producer club OPEC and Russia cut a deal to reduce output to drain a global supply glut, but analysts warned prices could recede as other producers stand ready to fill the gap.

The Organization of the Petroleum Exporting Countries (OPEC)agreed on Wednesday its first oil output reduction since 2008 after de-facto leader Saudi Arabia accepted "a big hit" and dropped a demand that arch-rival Iran also slash output. The deal also included the group's first coordinated action with non-OPEC member Russia in 15 years.

"OPEC has agreed to an historic production cut," analysts at AB Bernstein said. "The cut of 1.2 million barrels per day (bpd) was at the upper end of expectations (0.7-1.2 million bpd). An additional cut of 0.6 million bpd from non-OPEC countries could significantly add to what has been announced by OPEC."
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http://uk.mobile.reuters.com/article/idUKKBN13P031
 
S

SpecX

Member
What the fuck. Heading to Vegas this weekend, so better fill up before gas stations have a chance to react.
 
E

Earthstrike

Member
NYR said:
This has been in the works for months if not a full year behind closed doors.
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I wasn't necessarily implying causation. You may be reading my post sarcastically. You know how the tone you read something in can change its meaning, right? This is hard to explain but think of different ways someone can say go figure.
 
1

1st Course

Member
The deal should make it better for everyone.

Oil producing countries like Venezuela/Saudi Arabia etc have been facing tough times because of the lower oil prices.
 
S

Shamrock7r

Member
Ah well, low prices were fun while they lasted.

Earthstrike said:
I wasn't necessarily implying causation. You may be reading my post sarcastically. You know how the tone you read something in can change its meaning, right? This is hard to explain but think of different ways someone can say go figure.
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Lol, are you trying to introduce a language arts lesson?
 
S

SwiftDeath

Member
On the one hand I missed sub-$2.00 by a day as I wanted to fill my tank yesterday but it shot up to $2.35

On the other hand, higher gas prices are likely the only thing that will drive growth of renewable energies with Trump in office
 
M

Makki

Member
Daddy needs a new car!!! ...no really, I need my job people. Buy more CUVS/SUVS/Trucks and burn those reserves lol
 
U

UrokeJoe

Member
Coldsun said:
*slow clap*.
You do realize that this has nothing to do with the Republicans.

I get it. You don't like them. Doesn't mean that everything is their fault.
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Everyone knew it would go up eventually, but the timing is, uh right on time.

It's like controlling the water hose when you are out on the front lawn playing football.
 
V

VendettaRed07

Member
Lebron said:
As someone who works in oil in gas


bless Supreme Emperor Trump
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Same here

Co57vYMWcAAcJuv.jpg
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Z

zer0das

Banned
I honestly doubt it will do much in the short term given the oversupply levels. And if Trump goes hog wild opening up drilling like he wants to, then Opec will probably start pumping under the table when they can't fund their budgets.
 
D

Deleted member 80556

Unconfirmed Member
God Dayumm said:
Spoken like a good ol' white privileged person that doesn't mind the monetary hit as much
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I mean there are economies of certain countries like mine that depend on high prices of oil to keep going forward. I can understand you being angry that you have to pay more for gas, but I'm glad that the poor people in my country will have access to social services without fear of collapsing the whole damned country.
 
shira

shira

Member
ahoyhoy said:
.

Need more incentive for electric cars again.

Crazy that we may be getting automated cars around the same time we get a fully electric car economy.
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I somehow always equated automated cars with electric. I can't imagine a robot filling at the pump I guess
 
D

Dr.Acula

Banned
zer0das said:
I honestly doubt it will do much in the short term given the oversupply levels. And if Trump goes hog wild opening up drilling like he wants to, then Opec will probably start pumping under the table when they can't fund their budgets.
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Maintaining oil reserves is important to national security. The US shouldn't tap it in a time of relative peace and economic prosperity.
 
E

Ether_Snake

安安安安安安安安安安安安安安安
Won't last, oil will stay below 50$ after the hype.
 
T

The Lamp

Member
God Dayumm said:
Fuck Russia and fuck Trump too



Spoken like a good ol' white privileged person that doesn't mind the monetary hit as much
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More like spoken like someone who has a more decent idea of the importance of the petrochemical global industry than you.

Sure, I bet you're enjoying cheaper gas while millions of petrochemical jobs disappeared over the last 2 years, countries struggled, and alternative energy became less incentivized after cheap oil competition.
 
Y

You Are Viewtiful

Member
I'm not a huge expert at this, but I doubt it was OPEC that caused the crash in the first place, seeing as their production didn't rise all the much before and just right before the crash. It was more the shale oil boom in the US and the much lower than expected demand from China that caused the prices to drop.
 
K

Kthulhu

Member
Hopefully now renewables will get more of a push and people will start buying more fuel efficient cars again.

Also good for Oil and Gas Gaffers.

You Are Viewtiful said:
I'm not a huge expert at this, but I doubt it was OPEC that caused the crash in the first place, seeing as their production didn't rise all the much before and just right before the crash. It was more the shale oil boom in the US and the much lower than expected demand from China that caused the prices to drop.
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I remember reading that they increased their output in order to hurt western oil companies in the midst of the other things you mentioned.

God Dayumm said:
Fuck Russia and fuck Trump too



Spoken like a good ol' white privileged person that doesn't mind the monetary hit as much
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Lots of economies and middle class families depend on oil having a decent price. Hundreds of thousands of people have been laid off because of this, plus investment into renewable energy and electric cars has slowed. This will ultimately be a positive thing.
 
U

Unknown Soldier

Member
Ether_Snake said:
Won't last, oil will stay below 50$ after the hype.
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That depends a lot on how domestic oil production fares under God Emperor Trump. If he really does set the American petroleum companies loose on the shale oil fields, the prices will certainly crash. American oil imports are already at their lowest levels since the 1980's, because American domestic production is nearing historical record highs.

Simultaneously with this will be the beginnings of mass production of electric vehicles in the next 5-10 years. The God Emperor will be unable to prevent companies like Tesla from flooding the market with large quantities of cheap electric vehicles, this will further suppress demand for oil in the near term.

Ultimately OPEC controls the production of a natural resource that quite frankly we won't be needing for much longer, and that's good for everybody. Except maybe the Saudi royal family, and the hell with them.

You Are Viewtiful said:
I'm not a huge expert at this, but I doubt it was OPEC that caused the crash in the first place, seeing as their production didn't rise all the much before and just right before the crash. It was more the shale oil boom in the US and the much lower than expected demand from China that caused the prices to drop.
Click to expand...

OPEC maintained their production quotas as oil pricing spiraled downwards because they specifically wanted to regain market share from the American shale oil producers. Shale oil costs a lot more to produce, so it needs a relatively high price per barrel to be profitable. OPEC was trying to starve out American domestic production by making it grossly unprofitable but that was a fool's errand, we weren't about to just abandon our shale oil fields after all the investment required to being producing the oil in the first place. It's better to keep fracking and lose some money gradually rather than just stop and lose your entire investment.
 
G

God Dayumm

Banned
The Lamp said:
More like spoken like someone who has a more decent idea of the importance of the petrochemical global industry than you.

Sure, I bet you're enjoying cheaper gas while millions of petrochemical jobs disappeared over the last 2 years, countries struggled, and alternative energy became less incentivized after cheap oil competition.
Click to expand...

I understand but two of these things are at odds. Do you want to keep the petrochemical industry afloat or do you want alternative energy?

I know what I want: whatever leaves more money in the pockets of the poor and middle class.
 
K

KingBroly

Banned
Unknown Soldier said:
That depends a lot on how domestic oil production fares under God Emperor Trump. If he really does set the American petroleum companies loose on the shale oil fields, the prices will certainly crash. American oil imports are already at their lowest levels since the 1980's, because American domestic production is nearing historical record highs.

Simultaneously with this will be the beginnings of mass production of electric vehicles in the next 5-10 years. The God Emperor will be unable to prevent companies like Tesla from flooding the market with large quantities of cheap electric vehicles, this will further suppress demand for oil in the near term.

Ultimately OPEC controls the production of a natural resource that quite frankly we won't be needing for much longer, and that's good for everybody. Except maybe the Saudi royal family, and the hell with them.
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Didn't we also just find a ton of oil under Texas? Or was I mistaken?

Also the Keystone Pipeline will be built, so...that'll be a thing.
 
G

GameAddict411

Member
I guess people now will regret getting those massive SUVs now. Higher fuel prices means more economical cars and alternative powered cars. I say go full steam ahead!
 
M

MrNelson

Banned
God Dayumm said:
I understand but two of these things are at odds. Do you want to keep the petrochemical industry afloat or do you want alternative energy?

I know what I want: whatever leaves more money in the pockets of the poor and middle class.
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Higher gas prices have an impact on what cars people choose to drive. When prices went down this year, more people started buying trucks and SUVs again. When they go up again, people will move towards more fuel efficient vehicles/electric cars.

If you want alternative energy development to move faster, then you have to be ok with gas prices going up to increase the incentive.
 
U

Unknown Soldier

Member
KingBroly said:
Didn't we also just find a ton of oil under Texas? Or was I mistaken?

Also the Keystone Pipeline will be built, so...that'll be a thing.
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I haven't heard that, but I wouldn't be surprised. The US has long been believed to sit on large deposits but because exploring for oil on domestic soil is extremely unpopular, most of it has never been found.

The Keystone Pipeline benefits the Canadians, our closest allies. Their economy is being strangled too by the low oil prices and it would benefit them greatly if it is built.
 
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