Financial Times/Derek Brower and David Sheppard/4-8-2023
“The disintegration was visible again this week, when Riyadh and its Opec+ allies shocked the oil market by pledging to cut even more crude from supply — an effort to shore up oil prices despite swirling worries about the global economy’s health. The surprise from the cartel was a ‘watershed’ moment, says Greg Priddy, a consultant at the USbased Spout Run Advisory.”
USAGOLD note: Financial Times explores why this OPEC production cut differs from the recent past. Though the 1970s are not mentioned, one cannot help but recall those days in the context of what is unfolding in the Middle East – particularly in light of Saudi Arabia’s developing relationships with Russia, China, and Iran. One analyst sees oil going to $140 per barrel this year. If oil reaches that level, it will likely unleash considerable turmoil in the global economy on many different levels.