RUSSIAN $180 Billion Oil Disaster as Price Falls, Production Cuts & Sanction Discounts Hurt Russia

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OPEC+ has announced that it is cutting Oil Production by 1 Million Barrels of Oil per day. This cut is in addition to the cut of 1.1 Million Barrels per day announced in April and 2 Million Barrels Per Day announced in October 2022. The reason for these cuts is to try to maintain Oil Prices however the strategy has not worked so far. In this video I provide more details of these cuts and look at the impact of falling prices and the Sanction Discounts on both the price of Russian Oil and Russia's revenue and discuss the future impact on the Russian Economy.

For specific details please check out the CHAPTER list below.

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Chapters:
0:00 Intro
2:13 PRODUCTION CUTS
4:38 GLOBAL OIL PRODUCTION
7:25 OPEC+
8:54 OIL PRICE
13:19 RUSSIAN OIL PRICE
15:39 SUMMARY & CONCLUSION

#UKRAINE
#russia
#pricecap
#GLOBALFINANCIALCRISIS
#RUBLE
#SWIFT
#RECESSION
#CHINA
#USA
#NATO
#WW3
#WORLDWAR3

[bernaertsjacob]

It is clear that the OPEC countries didn't learned from history. They already tried this short-term strategy in the 1970s with unseen disastrous consequences for them in the medium and long term. After a few years they had to increase their production again to avoid a financial disaster, but by the time they did this the demand side already structurally adapted to a low petroleum consumption and it took them decades to regain a viable balance.

[NorthernKitty]

Due to the high price of gas, most everyone I know has been severely cutting back on travel. I think the Saudis are short-sighted if they think these production cuts are going to result in higher prices. In fact, it may have the opposite effect as people continue to be more motivated to cut back on consumption.

[commonmandenver]

Even if a barrel went up to 100 dollars per unit, it will never be enough. The vast majority of all these countries mismanage there economies so much that they always need more cash and waste All of it.!

[martientegelaers]

double import prices for all OPEC countries, let the grow their own food and make own wapens

[arnoldmags]

Food and other supplies should be cut for OPEC countries so that Saudi Arabia will will feel the pain also

[Phoenix-ovgg]

This should be a big lesson to the west to transition to green energy, regardless of your stance on climate change, it leaves us vulnerable to these oil dictatorships.

[nickmon]

One important factor at play has been missed here: while OPEC has been lowering supply, Russia has been acting to the contrary. They have been trying to increase sales, and have been steeply undercutting the oil prices. They occupy a big share of the oil market. Due to such undercuts, OPEC could not hold its line.
Instead of trying to raise the price, OPEC could use this moment to take Russia off the market. Russia’s foreign reserves are frozen now. They have to operate on the revolving income only. If OPEC would dump the price of oil for 6 months, they will wipe Russia off the market. Otherwise, it will keep putting sticks into their wheels forever.

[SteveMHN]

their profits are suffering. My heart is bleeding so bad right now.

[Snodgrassdsd]

Joe - I like your videos! Please make them half the length. I would watch them more then. Your content can easily fit in 10 minutes! Thank you!

[michaeldunham]

Increasing prices is just going to encourage nations and people to cut back on their use of oil so it won't actually increase revenue

[jessewhittemore]

None of you bothered to mention Qatar or the 5th Fleet. We pulled our carriers cause their absence makes Arab leaders leave their harems and actually try to govern. Not saying thats a good idea, but its the why

[texastrustedoralsurgeon]

Joe, sure they would like to maintain price as high as possible, but THE reason the Saudis cut production is not because of price, it’s because they know that either they cannot keep up with their stated production goals and don’t want to be questioned on it, or they know that demand for crude oil is falling and they can’t sell the oil to a customer. Putting oil into tankers that never get emptied due to less demand of crude is a problem.

[porkyvonchop]

OPEC - "Organisation of the Petroleum Exporting Cartel" is monopolizing oil price again

[MrKockabilly]

We are just getting used to it but really what could be more blatant and unscrupulous business than officially declaring production cut to increase prices. OPEC is holding the world hostage for no moral reason than to increase price.

[billwhite]

I love your very informative videos Joe. Lots of research done to present these

[enemyofthestatewearein]

IMO essentially what's happening is OPEC have pretty much lost control of the market. The price cap effectively functions as a reverse-OPEC cartel on the demand side, which coupled with sluggish global trade, is putting a stiff ceiling on prices. As OPEC cut they just loose market share, and there is a limit to how deep they can cut as members are dependent on revenues to fund public spending. It's also worth noting that most predictions show that global peak oil demand (due to move to alternative energies) is not far off, and the OPEC majors are well aware of the looming opportunity cost of failing to sell their reserves now, before demand tails off. So I wouldn't be too surprised to see an OPEC major breaking ranks at some point.

[georgeferguson]

I really like your information on a level I can understand. Especially regarding Russia

[marksiems]

With the economic crisis and downturn are all the signs of 2008 market crash 2.0, so my question is do I still save in the US dollar or is it okay to move all emergency and savings to precious metals?

[Kelvins]

OPEC brings Cartel concept is in its finest form.

[louisfry]

Great explanations and summary. Very insightful!