How Biden broke OPEC

Charmonium · Jun 6, 2024

OPEC’s surprise output hike offers Biden break on gas prices

President Biden may have just received a timely election boost from an unlikely source.

finance.yahoo.com

Soaring fuel costs emerged as a political albatross for Biden early in the summer of 2022, when pump prices peaked at more than $5 a gallon, giving Republicans the chance to bash his energy and climate policies before the midterm elections.

Still, Biden has taken unique ownership over the issue, saying later that year that his decision to unleash a historic amount of crude from the nation’s emergency supply provided motorists with relief at the pump.

OPEC’s move “could keep gasoline out of the headlines through the summer,” said Jim Lucier, managing director at Capital Alpha Partners, a research group in Washington.

“They are opening the door for their OPEC partners to produce more, but trying to maintain enough discipline to avoid a price collapse,” Lucier said in an email. “Ironically, it would be that price collapse going into the fall that would be the ultimate vindication of Joe Biden.”

So here's the story. To the best version of this catch the last 10-15 minutes of MSNBC's All In With Chris Hayes. It should be online

Summer of 2022, gas prices go up to around $5/gallon. Biden goes to Saudi Arabia and then we have 2 months of "the fist bump."

MBS says, sure, we can put out more oil, but what are you going to do for us?

Biden - nuttin'

Biden then opens the valve on the strategic oil reserve and sells 180B at close to 100 bucks per barrel.

This scares the shit out of oil traders since know they know that the US Treasury is going to be on the other side of their trades.

Now, to keep OPEC from fracturing, they had to open up the valves on their end

Biden is now replacing the reserve at prices under 70 bucks per barrel

edit - Oops, I think that was supposed to be 180M not B.

Joe Biden - greatest oil trader in the history of the universe.

Charmonium · Jun 6, 2024

Something that's important to note here, is that Uncle Joe isn't on just the high end of this trade. His objective is to bracket the price of oil so that it doesn't go crazy on the high end but there is still a market on the low end for US producers.

gothuevos · Jun 7, 2024

Charmonium said:
OPEC’s surprise output hike offers Biden break on gas prices

President Biden may have just received a timely election boost from an unlikely source.

finance.yahoo.com

So here's the story. To the best version of this catch the last 10-15 minutes of MSNBC's All In With Chris Hayes. It should be online

Summer of 2022, gas prices go up to around $5/gallon. Biden goes to Saudi Arabia and then we have 2 months of "the fist bump."

MBS says, sure, we can put out more oil, but what are you going to do for us?

Biden - nuttin'

Biden then opens the valve on the strategic oil reserve and sells 180B at close to 100 bucks per barrel.

This scares the shit out of oil traders since know they know that the US Treasury is going to be on the other side of their trades.

Now, to keep OPEC from fracturing, they had to open up the valves on their end

Biden is now replacing the reserve at prices under 70 bucks per barrel

edit - Oops, I think that was supposed to be 180M not B.

Joe Biden - greatest oil trader in the history of the universe.

That's great and all, but Dems are the worst messengers in history so nobody will hear about it and people will still bash him for gas prices even as they come down a bit this summer.

feralkid · Jun 7, 2024

gothuevos said:
That's great and all, but Dems are the worst messengers in history so nobody will hear about it and people will still bash him for gas prices even as they come down a bit this summer.

Depends.

K1052 · Jun 7, 2024

Charmonium said:
Something that's important to note here, is that Uncle Joe isn't on just the high end of this trade. His objective is to bracket the price of oil so that it doesn't go crazy on the high end but there is still a market on the low end for US producers.

Converting the SPR into a massive price stabilizer is the real under appreciated story. Given US oil production levels it is mostly superfluous now anyway from a strategic perspective.

Zorba · Jun 7, 2024

K1052 said:
Converting the SPR into a massive price stabilizer is the real under appreciated story. Given US oil production levels it is mostly superfluous now anyway from a strategic perspective.

Being a price stabilizer is a massive strategic asset. It also still protects from any production supply issues, like if for some reason we lost access to the Gulf/Alaska, or if we lost our source of nickel or something similar.

K1052 · Jun 7, 2024

Zorba said:
Being a price stabilizer is a massive strategic asset. It also still protects from any production supply issues, like if for some reason we lost access to the Gulf/Alaska, or if we lost our source of nickel or something similar.

I'm just saying that was not the original intent of the reserve. It's a "what if the oil gets cut off/substantially reduced from the ME". It's creation is a direct result of the 73 oil embargo.

hal2kilo · Jun 7, 2024

Charmonium said:
OPEC’s surprise output hike offers Biden break on gas prices

President Biden may have just received a timely election boost from an unlikely source.

finance.yahoo.com

So here's the story. To the best version of this catch the last 10-15 minutes of MSNBC's All In With Chris Hayes. It should be online

Summer of 2022, gas prices go up to around $5/gallon. Biden goes to Saudi Arabia and then we have 2 months of "the fist bump."

MBS says, sure, we can put out more oil, but what are you going to do for us?

Biden - nuttin'

Biden then opens the valve on the strategic oil reserve and sells 180B at close to 100 bucks per barrel.

This scares the shit out of oil traders since know they know that the US Treasury is going to be on the other side of their trades.

Now, to keep OPEC from fracturing, they had to open up the valves on their end

Biden is now replacing the reserve at prices under 70 bucks per barrel

edit - Oops, I think that was supposed to be 180M not B.

Joe Biden - greatest oil trader in the history of the universe.

Who plays 3D chess now?

hal2kilo · Jun 7, 2024

gothuevos said:
That's great and all, but Dems are the worst messengers in history so nobody will hear about it and people will still bash him for gas prices even as they come down a bit this summer.

Yea, that's why you are not hearing about it.

Charmonium · Jun 7, 2024

K1052 said:
I'm just saying that was not the original intent of the reserve. It's a "what if the oil gets cut off/substantially reduced from the ME". It's creation is a direct result of the 73 oil embargo.

Yup. OPEC really slit their own throats with that embargo.

HomerJS · Jun 7, 2024

Wonder why the US along with other oil producing countries didn't get together and form their own version of OPEC?

Canada and Brazil are available

APU_Fusion · Jun 7, 2024

gothuevos said:
That's great and all, but Dems are the worst messengers in history so nobody will hear about it and people will still bash him for gas prices even as they come down a bit this summer.

Jesus, just shut the fuck up you feckless, worthless, diaper wearing, orange shit producing magat concern troll. You are such hot garbage. If survey came out with Biden ahead by 30% in polls you would state Biden has already lost and every democrat should gladly concede to republicans in every race.

We get it. You are spineless coward afraid of your own shadow, how about you stop wasting our time with your constant crying you blithering snowflake. Jesus h Christ. Ah, never mind. On ignore you go diaper wearer.

kage69 · Jun 7, 2024

Yeah he's over delivered in many ways, I'm still pretty surprised all things considered.

I'm particularly happy with how he worked with Japan and Netherlands to put the brakes on China getting advanced chip tech. Told Xi tough shit right to his face. Chips Act FTW too.

Biden didn't pull a Trump and ask for bribes in order to sell out his country's national security. It's nice to have a CiC who does his job and isn't a treasonous bag of shit, I could get used to this.

Zorba · Jun 7, 2024

HomerJS said:
Wonder why the US along with other oil producing countries didn't get together and form their own version of OPEC?

Canada and Brazil are available

Because the US is the main customer. Also the US and Canadan governments don't control production.

gorobei · Jun 8, 2024

msnbc Chris Hayes interview with Dan Dicker that the op referenced.

the timeline and profits from the biden admin moves is just brutal for all the vultures. by offering a stabilizing function for gluts and droughts there is less incentive to try and manipulate the market artificially for personal gain.

the other benefit is it really screws over russian oil profits.

How Biden broke OPEC

Charmonium

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OPEC’s surprise output hike offers Biden break on gas prices

Charmonium

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gothuevos

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OPEC’s surprise output hike offers Biden break on gas prices

feralkid

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K1052

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Zorba

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hal2kilo

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OPEC’s surprise output hike offers Biden break on gas prices

hal2kilo

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Charmonium

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HomerJS

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