What are your thoughts on this perspective re: OPEC 's oil production cut?
"The decision of OPEC+ to cut production is not simply about prices. It is about the ongoing struggle over democracy playing out in Ukraine, as the Ukrainians fight off the Russian invaders.
The Russian economy depends upon oil sales, and the U.S. and European Union have sought to cut into that money to hurt Russia’s ability to continue its attack in Ukraine. A day ago, after Russia illegally annexed four regions of Ukraine, the 27 member nations in the European Union joined the G7 (which is made up of Canada, France, Germany, Italy, Japan, the United Kingdom and the United States) to set a price cap on Russian oil, in addition to another round of sanctions. Theoretically, this plan should have enabled countries that need Russian oil for heat this winter to get it, while keeping the prices low enough to starve Putin’s war efforts.
Russia is co-chair of OPEC+ and is desperate for oil money, on which its economy depends. That economy is crumbling under international sanctions, and Russia’s oil production has dropped about a million barrels a day at the same time that the country has been forced to discount its oil to sell it. As Russia’s invasion of Ukraine is failing, it needs more money, and Russia asked for the OPEC+ cuts to increase prices." ~Heather Cox Richardson
What are your thoughts on this perspective re: OPEC 's oil production cut?
"The decision of OPEC+ to cut production is not simply about prices. It is about the ongoing struggle over democracy playing out in Ukraine, as the Ukrainians fight off the Russian invaders.
The Russian economy depends upon oil sales, and the U.S. and European Union have sought to cut into that money to hurt Russia’s ability to continue its attack in Ukraine. A day ago, after Russia illegally annexed four regions of Ukraine, the 27 member nations in the European Union joined the G7 (which is made up of Canada, France, Germany, Italy, Japan, the United Kingdom and the United States) to set a price cap on Russian oil, in addition to another round of sanctions. Theoretically, this plan should have enabled countries that need Russian oil for heat this winter to get it, while keeping the prices low enough to starve Putin’s war efforts.
Russia is co-chair of OPEC+ and is desperate for oil money, on which its economy depends. That economy is crumbling under international sanctions, and Russia’s oil production has dropped about a million barrels a day at the same time that the country has been forced to discount its oil to sell it. As Russia’s invasion of Ukraine is failing, it needs more money, and Russia asked for the OPEC+ cuts to increase prices." ~Heather Cox Richardson