The oil market has taken yet another hit this month as Saudi Arabia deepened oil production cuts to gain further control of prices at a time U.S. officials are failing to boost the domestic Strategic Petroleum Reserve, and supplies are rapidly dwindling.
The shock caused by lower global oil output is threatening to undermine U.S. energy stability and send prices at the pump soaring over the next few weeks and months. With the relationship between America and OPEC nations deteriorating, our geopolitical leverage is weakening, and the Saudis are seeing this situation as a perfect opportunity to strengthen their dominance in the global scenario.
Saudi Arabia and a handful of OPEC+ nations have been announcing significant cuts in their oil production this year. The Saudis and Russia, the world’s biggest oil exporters, deepened oil cuts earlier this month, sending prices higher for a third time this year. Saudi Arabia said it would extend its voluntary oil output cut while Russian Deputy Prime Minister Alexander Novak said Moscow would cut its oil exports by 500,000 barrels per day in August.
Similarly, Algeria said it would cut oil output by an extra 20,000 barrels from Aug. 1-31. The coming cut will be on top of a 48,000 barrel reduction decided in April, it said. The move was swiftly followed by Libyan Oil Minister Mohamed Oun. In all, the coalition, which pumps around 40% of the world’s crude oil, already has in place cuts of 3.66 million barrels per day, amounting to 3.6% of global demand.
OPEC leaders continue to point to an uncertain demand outlook as the catalyst for their decision. Moreover, many officials in Riyadh, the Saudi capital, were reportedly frustrated that U.S. Energy Secretary Jennifer Granholm recently said that it would be “difficult” for the United States to refill its Strategic Petroleum Reserve this year.
In January, the administration said it would boost its domestic reserves when oil dropped below around $70 a barrel, as it did for a brief period after the failure of Silicon Valley Bank. However, that opportunity was missed, and now U.S. supplies are rapidly shrinking.
The combination of a recession, the crisis in the banking sector and the reopening of the Chinese economy is making most analysts project a significant decline in global oil supply this year and next, after many decades of underinvestment to build new capacity. The latest production cut means that a tighter market and higher oil prices will arrive sooner than previously expected. That may be a disastrous scenario for America, but for the Saudis, spiking oil prices could more than compensate for lower sales, boosting OPEC revenues.
The price of oil on global markets is a major driver of gasoline prices in America, so as the price of oil goes up, gasoline prices will follow, and we should start bracing for a repeat of what happened last year when oil prices surged, sending the national average price for gasoline to a record of as much as $5 per gallon.
This summer, prices remained at the $3.50 average per gallon, bringing some relief to Americans after several months of rising inflation. But these lower costs didn’t come as a result of higher inventories. Instead, they were caused by political decisions amid the growing disapproval of the administration in recent polls.
Our national reserves have been depleted, and higher oil prices will make it even harder for us to rebuild domestic inventories. While other economic superpowers have become more independent, now more than ever, the U.S. is relying on other nations for resources, and that will come at a very expensive price for all of us.
Article and video via Epic Economist.
Why One Survival Food Company Shines Above the Rest
Let’s be real. “Prepper Food” or “Survival Food” is generally awful. The vast majority of companies that push their cans, bags, or buckets desperately hope that their customers never try them and stick them in the closet or pantry instead. Why? Because if the first time they try them is after the crap hits the fan, they’ll be too shaken to call and complain about the quality.
It’s true. Most long-term storage food is made with the cheapest possible ingredients with limited taste and even less nutritional value. This is why they tout calories so much. Sure, they provide calories but does anyone really want to go into the apocalypse with food their family can’t stand?
This is what prompted the Llewellyns to launch Heaven’s Harvest. They bought survival food from multiple companies and determined they couldn’t imagine being stuck in an extended emergency with such low-quality food. They quickly discovered that freeze drying food for long-term storage doesn’t have to mean sacrificing flavor, consistency, or nutrition.
Their ingredients are all-American. In fact, they’re locally sourced and all-natural! This allows their products to be the highest quality on the market, so good that their customers often break open a bag in a pinch to eat because they want to, not just because they have to due to an emergency.
At Heaven’s Harvest, their only focus is amazing food. They don’t sell bugout bags, solar chargers, or multitools. They have one mission – feeding Americans in times of crisis.
What they DO offer is the ability for people to thrive in times of greatest need. On top of long-term storage food, they offer seeds to help Americans for the truly long-term. They want them to grow their own food if possible which is why they offer only Heirloom, Non-GMO, Non-Hybrid, Open-Pollinated seeds so their customers can build permanent food security on their own property.
Visit the Heaven’s Harvest website and use promo code “Patriot” for a discount today!
Good thing Shufflin Joe Briben collapsed our energy industry huh?
We have all the reserves and refining ability we need to be energy independent, but Biden is hell bent on destroying our economy.
China Joe could care less. He demands everyone buy a electric car that needs electricity to charge which america can’t produce cheap enough since Biden shuddered our electric plants that need COAL!
If there’s a problem blame the voters who foolishly voted Democrat.
I’ve seen this movie. Spoiler alert: It didn’t end well.