It appears our Manchurian President-elect has already managed to initiate the trade war he all but promised while campaigning: Get set for a rising tide of oil and gas prices:
OPEC clinched a deal to curtail oil supply, confounding skeptics as the need to clear a record global crude glut — and prove the group’s credibility — brought about its first cuts in eight years.
OPEC will reduce production by 1.2 million barrels a day to 32.5 million a day, two delegates said Wednesday during a ministerial meeting in Vienna, asking not to be identified as the decision isn’t yet public. Benchmark Brent crude rose 8 percent to $50.07 a barrel in London at 1:37 p.m. local time.
After weeks of often tense negotiations, the Organization of Petroleum Exporting Countries’ three biggest producers — Saudi Arabia, Iraq and Iran — resolved differences over sharing the burden of cuts. Notably, it appears the Saudis accepted that Iran, as a special case, can raise production to about 3.9 million barrels a day. The agreement is also likely to include an additional reduction of about 600,000 barrels a day by non-OPEC countries.
“This should be a wake-up call for skeptics who have argued the death of OPEC,” said Amrita Sen, chief oil analyst at Energy Aspects Ltd. “The group wants to push inventories down.”
The deal promises to revive the tattered finances of countries from Venezuela to Libya and restore flagging confidence in the producer bloc that controls 40 percent of the world’s oil. But the consequences will reverberate far beyond OPEC, giving a boost to U.S. shale drillers crippled by a two-year price rout and oil giants such as Royal Dutch Shell Plc, which have cut spending to the bone to weather the prolonged downturn.
Suddenly after eight years of stable (when not falling) oil/gas prices, OPEC looks at our Clown Prince, smirks and screws down production. This will immediately benefit countries like Iran, Venezuela, Libya and, yes, Russia. The Sauds, of course, will make billions. Anyone see a pattern?
In addition, as the Manchurian President-elect has reiterated time and again, he intends to boost drilling/fracking in the US by gutting the environment 1 rather than lower demand through alternative energy.
Wake up, people.
- And now that the EPA administrators are playing down the water pollution issues of fracking that will be easier to do one the Manchurian President-elect takes office. If, indeed, the Clown Prince doesn’t kill that agency’s budget all together. ↩
- We can hardly wait to see how the Manchurian Candidate-elect handles coal! ↩
- Oops! And US shale producers will benefit, which of course means US insurance companies will also make money hand over fist due to all the new earthquake coverage policies they’ll write. ↩