Those markets are even tighter.
There is no excess supply of oil in the world, as OPEC Plus reminded everyone by saying: No, we are not going to increase production much, and we can’t even if we wanted to.
This came shortly after President Biden personally appealed.
For all the talk of high gasoline prices and Putin’s rhetoric about increasing energy prices, Russia’s oil exports haven’t dropped much. If that happens – because the US and Europe force oil out of the market to put economic pressure on Putin or because he takes oil out of the market will hurt us all – then the price of oil will go down. greatly increased.
For example, $200 a barrel, right?
I mean, it depends on how well he exploits the market. We don’t know exactly. I think if Russia completely cut its oil exports then prices will skyrocket – up to hundreds of dollars a barrel.
That’s because there’s no more supply right now. There is very little additional supply that Saudi Arabia and Saudi Arabia can bring to market. And that’s about it. We have used our strategic petroleum reserves and that will be over in the next few months. Currently, there are no additional buffer products on the oil market.
It’s all starting to look darker.
We are entering a winter where markets may simply no longer function as a tool for you to determine supply and demand. Usually, you have a market, and the price goes to a certain level, and that’s how the market allocates supply. But if prices get too high to be uncontrollable, the market won’t work anymore. You’ll need governments to step in and decide who gets the scarce energy supply – how much for heating homes, how much for industry. There will be a hierarchy of different sectors, with some considered more important to the economy than others. And a lot of governments in Europe are putting in place such emergency plans right now.
Let’s talk about those plans. If Russia really cuts off the whole of Europe, what will that look like for the people of Europe? What does that shortage mean on the ground?
