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Analysis: U.S. wants more oil, but OPEC+ can't turn on the tap much harder

U.S. pressure on OPEC+ to pump more oil and cool red-hot crude prices has shone a spotlight on a relatively new problem for the producer group: it doesn't have much extra capacity to hike output faster, even if it wanted to.

The Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, are unwinding record supply curbs made in 2020 when demand cratered, but not fast enough for Washington which is fretting about prices near three-year highs. ...
https://www.reuters.com/markets/europe/us-wants-more-oil-opec-cant-turn-tap-much-harder-2021-11-23/

#petroleum #oil #FuelPrices #OPEC #PeakOil
Expect much higher prices until it creates what is known as "demand destruction".

PS that will always cause an econoimic recession - always has in the past: qv 2008.
Ayep.

I need to see if Gail Tverberg is still publishing. Her assessment after 2007/8 was that oil would cycle between low and high prices.

As prices fell, production would collapse. As prices rose, demand would collapse. The two would cycle on each other. Though we also seem to have exogenous shocks (e.g., Covid) and various other factors as well.

Her argument was that the 2007/8 economic crisis was in part driven by the increased capital costs of increasing oil production. Fracking is expensive.

Most recent update was 10 days ago:

https://ourfiniteworld.com/
Gail Tverberg is oft-quoted - reliable source.
Ah, yes... the 2007/8 situation. I remember it well in my area. The $4/gallon price was the straw that broke the economy's back that time around. We're already at that price in some parts of the country. In my area, the average price is currently $3.35/gallon.