Sunday, June 09, 2024

“Sorry MAGA,” But You Don’t Have A Clue

Tl;dr: Biden tried to jawbone Saudi Arabia to increase production and lower prices. SA told Biden to pound sand. So Biden became the biggest oil trader in the world.

He sold inventory from the Strategic Petroleum Reserve at $90 bbl, driving the global market price down. He forced oil traders to play by saying he had more where that came from. They fell in line from fear of being left behind. Later he restored the reserves, buying at $70 bbl, for a profit of $4 billion into the Treasury.

And OPEC recently gave in and increased production, because the US is setting the price on the world market. Between that and increased US production, we’re sitting in the catbird’s seat.

(Trump’s play in this is to promise to open federal lands for drilling. “Drill, baby, drill.” He did that when he was in office. Nobody was interested. So he’s doubling down. Ignorance is all he has to offer.)
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