So functionally, they’re going to sell more oil in the future and at a cheaper price compared to competitors. Cause otherwise why leave the cartel? Also I guess this might also signal a shift to doing some non-dollar sales of oil?
Haven’t been following the news for a week so I can only speculate that the reason for this ranges from anything from trying to please trump by lowering prices to them trying to pivot to China.
It’s a classic case of historical materialism. There is only a couple different things that you can do, but for my money, they are going to try to seek out alternative protection. It is strange that they are leaving OPEC, but like, there could be a number of reasons. I don’t think it would be a pivot to the U.S., who just got their shit rocked, but it could be to stick it to Iran on behalf of the U.S. (they were already on the U.S.s side). The U.S. has lost the military conflict, but they could win the economic conflict. It would be rocket fuel for China, but the U.S. might (if it is rational, which they aren’t, so idk) be willing to take a solid second to China. The big problem is that I think they are underestimating the ability of countries like India, Vietnam, and Malaysia, to also use the cheap oil (and cheap solar from China) to rocket their economies. Their huge problem is lack of resources, and cheap oil means cheap resources. They have the labor force, they just need the capital goods.
So functionally, they’re going to sell more oil in the future and at a cheaper price compared to competitors. Cause otherwise why leave the cartel? Also I guess this might also signal a shift to doing some non-dollar sales of oil?
Haven’t been following the news for a week so I can only speculate that the reason for this ranges from anything from trying to please trump by lowering prices to them trying to pivot to China.
It’s a classic case of historical materialism. There is only a couple different things that you can do, but for my money, they are going to try to seek out alternative protection. It is strange that they are leaving OPEC, but like, there could be a number of reasons. I don’t think it would be a pivot to the U.S., who just got their shit rocked, but it could be to stick it to Iran on behalf of the U.S. (they were already on the U.S.s side). The U.S. has lost the military conflict, but they could win the economic conflict. It would be rocket fuel for China, but the U.S. might (if it is rational, which they aren’t, so idk) be willing to take a solid second to China. The big problem is that I think they are underestimating the ability of countries like India, Vietnam, and Malaysia, to also use the cheap oil (and cheap solar from China) to rocket their economies. Their huge problem is lack of resources, and cheap oil means cheap resources. They have the labor force, they just need the capital goods.