🛢️ OPEC Won't Play Ball

China Slap Tariff On USA Okay

Good morning, here's what the OilPatch Team has for you today:

OPEC Won’t Play Ball with Trump

OPEC has signaled it won’t heed Trump’s calls for lower prices.

It’s probably the least surprising news of the year after the EU’s gas trouble.

And it might spell more trouble.

Political card won’t work

When Trump called on OPEC to boost production, he played the political card.

He said lower prices would help end the war in Ukraine.

But that won’t work on OPEC.

Sure, there are political considerations in the cartel.

But the most important consideration is price, price, price.

Nothing else comes even close.

Also, Russia is OPEC’s biggest ally.

It adds significant strength to OPEC’s price control moves.

So they’re not going to give up on that to please Trump.

They also don’t care about the Ukraine war.

Especially now that Trump is about to uncover the degree of corruption related to that war.

There’s more, too.

OPEC just demonstrated it can hold its own by ousting the EIA from its list of production sources.

Instead, it will be using OilX, Kpler, and ESAI, which are private entities.

The plot twist in the shale patch

When it comes to oil prices, Trump’s got his work cut out for him.

OPEC is not the only group that needs higher oil prices.

Shale drillers are also more comfortable with more expensive crude.

So, Trump can’t make both consumers and producers happy.

He’ll have to pick one.

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“No rich people thought there was any safe way of getting 8% if you go back to 1880 among the rich people of England.”

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China Slaps Tariffs on U.S. Crude, LNG

China has slapped tariffs on LNG and oil imports from the U.S.

The move comes in response to the latest U.S. tariffs on Chinese imports.

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