[WaPo Opinion] How to recover from President Biden’s Saudi Arabia failure

No, them pumping less is what will cause a recession and cause them to sell less oil. Cutting prices 10% will garner them more profits in the long run as they will keep demand higher by preventing a severe recession. Cutting supply now leads to short term profits but kills demands and will force the price down anyway, in which case they now have less price to charge AND less oil sales.

 

I heard it’s a good idea to give these guys the World Cup next
@AroundTheWorld

 

Hmm, bit of a chicken/egg dilemma right there... It depends right?

Commodity prices right now are starting to fall little due to weakened global demand. I think gasoline prices at the pump are generally inelastic if people are willing to pay more for inflation elsewhere (restaurants, retail, entertainment, etc...).

Demand could change if oil is used to heat homes. It could also change if more people get laid off.

The numbers for now though is that consumers would rather borrow money than spend less. That spending is a strong driver in current market hopium even as weakness in oil and other commodities are showing.

 

No trans person winning the beauty contest here
Actually no beauty contests either
But at least there’s no woke Disney shows

 

OPEC+ oversupplied the market with oil under Trump, in order to put the over-leveraged US shale industry into bankruptcy. The oil bust started in 2018/2019 and then Covid did the rest.

The problem with oil production is the state owned companies vs private; the former can play the long game and undercut the private sector.