OPEC+ output cut on tap, ADP report and more: Wednesday's 5 things to know
S E E D E D C O N T E N T
North Dakota Republican Sen. John Hoeven reacts to Biden's war on fossil fuels on 'Kudlow.'
Here are the key events taking place on Wednesday that could impact trading.
OIL MEETING: OPEC+ meets on Wednesday and may be set for a large cut in oil output.
The potential OPEC+ cut could spur a recovery in oil prices, believed to have dropped from $120 three months ago to about $90 due to fears of a global economic recession, rising U.S. interest rates and a stronger dollar, according to Reuters.
OPEC+, which includes Saudi Arabia and Russia, is working on cuts in excess of 1 million barrels per day, sources told Reuters this week.
OPEC+ MEETING MAY CONSIDER OUTPUT CUT THIS WEEK: REPORT
FILE PHOTO: A 3D-printed oil pump jack is seen in front of the OPEC logo in this illustration picture, April 14, 2020. REUTERS/Dado Ruvic/File Photo (REUTERS/Dado Ruvic/File Photo / Reuters Photos)
One OPEC source said on Tuesday the cuts could amount to up to 2 million barrels a day.
ADP REPORT: The payroll processing firm releases its National Employment report for September.
Economists anticipate a gain of 200,000 private-sector jobs. That would be an improvement from a disappointing 132,000 new jobs in August, which was less than half the 288,000 estimate.
JOB OPENINGS UNEXPECTEDLY PLUNGE IN AUGUST TO LOWEST LEVEL SINCE JUNE 2021
TRADE BALANCE: The monthly deficit in goods and services for July is expected to narrow for the fifth month in a row to $67.7 billion.
Port Long Beach California (iStock / iStock)
That would be the smallest since May 2021, and a steep reversal from $107.6 billion in March, when the deficit hit a record on huge demand for imported goods and rising prices tied to inflation.
SERVICES PMI: The Institute for Supply Management releases its non-manufacturing PMI for September. This key gauge of services sector activity is expected to slip to 56.0. That's after rising unexpectedly in August to the highest since April on solid growth in new orders. Keep in mind 50 is the dividing line between an expanding and contracting services sector.
Storage tanks are seen at Marathon Petroleum's Los Angeles Refinery. (REUTERS/Bing Guan / Reuters Photos)
OIL INVENTORIES: The DOE's Energy Information Administration will release its inventory report for last week. Crude stockpiles are expected to rise just over 2 million barrels, following a slight but unexpected draw of 215,000 barrels the previous week.
Watch for declines of around 1.35 million barrels each in distillate (heating oil, diesel fuel) and gasoline inventories.
Tags
Who is online
414 visitors
Joe Biden is directly to blame for taking the US back to the stone age when we were dependent on OPEC oil.
OPEC + (Russia) is about to stick it to all of us.
If I were a conspiracy nut along the lines of our right wing friends I would say that this is the Saudis intervening on behalf of the interests of ex- President Trump.
Joe called them "killers," then he begged them for oil.
The voters won't forget
Looks like you are.
You threw that out there after "cleverly" posting your disclaimer first...............can't unsee/unread it now. Thanks for your presentation. That you think the Saudis give one shit about Trump now that he is out of, and will not return to, office is really funny.
What's this "If" shit?
Sounds like a conspiracy theory to me.
They are raising the price of oil just before the American election. As someone in love with conspiracies I'm surprised you dont see the possible connection.
Still haven't shown me where it's not a conspiracy theory.
You are confused.
There's nothing to be confused about. We've all grown pretty accustomed to your lack of links and information to back up any of your claims. Just like you've done here.
Gee, I guess Joe's famous fist bump with the Prince really was successful, why just look at how much more oil they won't be producing!!
Joe is a real charmer/S
The president is further depleting the strategic oil reserve in order to manipulate prices just before an election.
I'm not at all surprised you don't see the connection.
Is this the reason gas prices jumped 22 cents a gallon this morning?
It has gone up here over the last 2 weeks 4 times.
Seems that Brandon whispering menacingly as he could "Lower the gas prices! Lower them" didn't work. He looked like the Joker, and sounding like Darth with severe case of Laryngitis. How is anyone supposed to take him seriously? Demanding twice in six months after he finally ran out of oil reserves to pump into the market doesn't help. He doesn't understand how anything works; because his handlers are woke morons that don't know how anything works. Gas stations are operating on narrow profits. Oil and gas companies are subject to the markets and future speculation. Every action Brandon has taken since entering office has affected oil and gas prices negatively.
Brandon won the election by running on not being Trump. He is correct, he is definitely not Trump. He is a far worse president than Trump ever was.
So, last week I got a bargain with home heating oil at $4.10?
The average price for gas in Arizona is $4.49 a gallon, but here on the west side of Phoenix we've been over $5 for the past week or so. And gas prices go up every day. Makes me glad I retired so that I don't need gas to drive into the office daily. But what will this winter bring us and how many people will suffer due to the high costs of just trying to heat their homes?
And now Biden is looking to release another 10 million barrels from the strategic reserve to offset the reduction from OPEC. Another fine attempt to offset the issues facing Democrats for November.
king to release another 10 million barrels from the strategic reserve to offset the reduction from OPEC.
They are doing everything they can to keep prices as artificially low as possible for the next month. Depleting the strategic reserve at a time extreme global instability to help the Democratic electoral chances is textbook party over country behavior.
Wow, an entire days worth of imports. He is just awesome........Anybody know when he plans on replacing the oil he's taken from the strategic reserve? Maybe after the Midterms?
Definitely after midterms- so he can blame the rise in gas prices on Republicans coming to power in Congress for not supporting his Build Back Broke plan.
I think Joe maybe plans on getting it from some special gas station in the Bronx where they have magical prices!
Our dependence on OPEC oil was been falling for years.
Petroleum imports from OPEC countries to the United States from 2000 to 2021* (in 1,000 barrels per day)
In 2021, the U.S. imported 6.1 million BPD, of which only 800,000 BPD came from OPEC. More importantly, a lot of that imported oil was refined and re-exported as finished products. Net imports of U.S. crude oil and finished products were actually -62,000 BPD (i.e., the U.S. was a net exporter).
Forbes
I see a lot of complaining about the cost and lack of fuel (gas) but no solution except to blame Biden. With OPEC cutting production by two million BPD how do we respond, does anyone have any ideas?
Let me give you a start, should the house and senate pass the NOPEC bill? With the Senate Judiciary Committee passing the bill in May, it needs to pass the full Senate and House and be signed by the president to become law.
Sound like a good idea? any other suggestions?
He is the leader of the free world, and was supposed to restore our world standing, remember? I guess he hasn't yet completed that little task.
Maybe Biden can go fist bump some more Arabs and get them to increase production.
Oh, well, it is just temporary, after all.
We'll manage to survive.
Yep, if he lets it go to far he's going to have to back off on his election proclamation of no more drilling on US soil...
Trump had it right much to the chagrin of all the liberals out there... Produce so much that we become a net exporter of oil, fill the reserve to the brim, and drive the international price of oil into the toilet...
It makes us stronger and them weaker... Biden has approached it from the opposite direction stop new production and reduce what we are already doing, drain the reserve making us dependent on oil prices set by others that really don't like us and raise the price of oil to support the Global warming nutcases, (and our enemies)....
The situation we are in is directly and irrevocably tied to Biden's administrative orders about oil, production and drilling, He owns and the democrats own the responsibility for the high prices because of his approach to oil is a political one based upon junk science and not a practical one designed to support this nation...
YOU know that, and I know that............but how do we convince lemmings that many Democratic policies (energy, border security, immigration, give-aways) are just bad for America?
We don't, Lemmings are little mousy creatures that run in packs following the one out front blindly... Their main problem is the one out front doesn't have a clue where he is going or what he wants to do...
But they are cute, I guess that's where they get their popularity from...
Solution number one,
We'll manage to survive, so we do nothing.
Solution number two
Bitch about Biden and dems
BTW The US is the largest producer of oil in the world and we are in 2021 a net exporter.
Solution number three
Agree with solution number two
Solution number four
Whine about lemmings.
You forgot solution #5
Watch leftists claim Biden has nothing to do with anything bad happening under his watch. Push hard everything that Biden and Democrats have forced down our throats that got us into this mess in the first place. Then blame Republicans for not supporting it.
That would be your solution which is more whining about Biden.
It was nothing more than a meaningless catchphrase and the left was (and still are) gullible enough to actually believe that stupidity.
That DOES appear to be Biden's "plan".
Hope you're happy with it!
That's all he ever does.
Well Kavika, when one shuts down federal lands, new permits and discourages investment in fossil fuels: one has earned the blame.
Leases on federal lands are active now as is offshore drilling. New permits have not been shut down.
https://westernpriorities.org/2022/03/by-the-numbers-oil-industry-awash-in-permits-leases-while-pushing-for-more-drilling%EF%BF%BC/#:~:text=Combined%2C%20the%20oil%20and%20gas,be%20put%20to%20use%20today.
Once again, Vic do you have any ideas on how we should resolve the current OPEC cut back?
"President Joe Biden's administration has leased far fewer acres for oil and gas drilling offshore and on federal land at the early stages of his presidency than has any other leader since Harry Truman at the end of World War II, according to a new analysis."
Once again, Vic do you have any ideas on how we should resolve the current OPEC cut back?
Your president went to the Saudis begging on hands and knees for increased oil production. They just screwed him. The idea is simple Kavika: Have American oil companies increase production!
Yet there are 9,000 unused leases currently...Well DUH, Vic when in the hell are they going to start using them and stop their whining?
Do you know what the NOPEC bill is Vic? Do you actually have any coherent thoughts on it?
So if American oil companies increase production that will solve the problem? The administration isn't holding them back, they are enjoying record profits and have said clearly that they have no intention of increasing production because of the money they are making...
Remember Vic, the US is a capitalist economy so the oil companies can choose to do exactly what they are doing now.
Yes, Biden is my president just as Trump was my president. It's too bad that you can't recognize that it should apply to you as well.
That's the left's excuse. Many of those are unprofitable and many require a drilling permit.
Do you know what the NOPEC bill is Vic?
Yes, it was a response to OPEC, when the US stood in line depending on our enemies that comprised OPEC
Do you actually have any coherent thoughts on it?
Yes. Let America produce it's own oil
So if American oil companies increase production that will solve the problem?
Yup, along with kicking every green energy fanatic in the ass.
Remember Vic, the US is a capitalist economy
Is that the point of Biden trying to discourage investment in American energy?
Is there oil on those lease’s? The oil companies can’t even explore for oil until they secure the lease. You act like they already have oil they aren’t pumping. Partisan hackery at it’s finest.
Biden is a fucking Moron and his VP slept her way into a position she isn’t qualified to do.
Not an excuse but a fact, Vic. Do you have a list of those that are unprofitable?
Congratulations
We are already doing that and are the largest producer of oil in the world.
LOL, are you personally going to try to kick green energy supporters' asses?
Deflection on your part, Vic.
I'm not acting in any way except posting facts, and your response is exactly what you are accusing me of.
Which has nothing to do with this but it seems that throwing shit at the wall is the best you have to offer.
Let's get it right from the industry:
"The Biden administration has repeatedly pointed to the number of approved but untapped drilling permits on federal land when questioned about how U.S. production can rise, and what the federal government can do to help.
“Just because you have a lease doesn’t mean there’s actually oil and gas in that lease, and there has to be a lot of development that occurs between the leasing and then ultimately permitting for that acreage to be productive,” he said. “I think that they’re purposefully misusing the facts here to advantage their position.”
Sommers said the Biden administration should support policies that promote U.S. oil and gas production over OPEC+, which includes Russian oil. The U.S. and its allies are considering banning imports of Russia crude after the country invaded Ukraine."
We are already doing that
That is simply not true. Joe Biden is a stooge for the green energy crazies. I know it and the voters know it. Don't believe me? Just wait until Nov 8th. I suspect you know it too, despite the exercise of pretending that Biden isn't actively trying to push the US away from fossil fuels.
Ya! Exactly. All he has to offer.
There is no misunderstanding, Vic the lease is no guarantee that there is oil on that parcel.
If that happens then we will see the republicans put up or shut up.
Are you saying that the US isn't the biggest producer of oil in the world?
The oil companies deliberately underproduced domestic oil in order to raise prices so they could maximize profit. They even have a rationale - they lost money during the pandemic when no one was driving much so now they get to gouge everyone to even things out.
That's Biden's big lie. He is shutting down American fossil fuels and we all can see it.
Not true.
Didn't he ask the domestic producers to increase production?
You keep bitching and then fail to demonstrate HOW Biden is supposed to lower oil prices, and then you fall back on the "wait until election day" argument, which is a total non sequitur. You've got nothing except words saying "It's Biden's Fault", Nothing about how the rest of the world factors into the equation, nothing about the enmity and callousness of the domestic producers towards the administration. Everything in your world is a fight, an us vs. them conflict in zero-sum land. That type of thinking brought the world to its present point. That type of thinking is why the price of oil is as high as it is.
"Biden is a fucking Moron and his VP slept her way into a position she isn’t qualified to do."
What ignorance and I see who votes up that ignorance every time.
OPEC has said it will stop using the dollar for oil sales if NOPEC passes.
What is the idiot in chiefs plan when that happens?
OPEC was said a lot of things but when the NOPEC comes up they do heavy lobbing against it. Currently it has been supported by both sides, dems and republicans. The question is what are is congress going to do about it if they pass it?
Intelligent people know Congress can’t do anything about it if it passes. So why do you ask?
It then becomes the responsibility of the moron in chief to enforce it.
What happens if OPEC stops using the dollar? What a legacy that would be for the idiots in charge. Of course you wil blame republicans when that happens.
It is congress that has the responsibility to weigh all the possible options/repercussions if they choose to pass it and forward it to the president he has the option to approve it or veto it. Intelligent people know that.
So, the first line of responsibility lies with congress.
I'm not blaming anyone and you are not the Great Karnac with your assumptions.
[deleted]
"The question is what are is congress going to do about it if they pass it?"
[deleted]
Not moving the goalpost at all, simply explaining to you how the procedure works.
I'd say it's a lack of understanding on your part. You don't have to be a Karnac to spot a partisan, you were spotted instantly.
I originally thought it was the quality of the discussion here that cause this site to be so stagnant the few times i would check in in the past. it appears that it is more likely a combination of biased moderation coupled with personal attacks allowed to stand as long as they have the "right ideology"
One last question, how many tickets before you get a stuffed animal?
[I'm letting this comment stand to remind members what not to do. You make your comments personal. I would suggest reading our CoC. Any further commentary on this will be deleted as meta.]
[deleted]
[deleted]
Well deserved, but damn…some of my best work…have a good day, all.
To many of us, it seems that way
I would say Biden could reach out to Trudeau for additional exports, but after the idiot killed Keystone, and there is a chance he saw Trudeau's pictures in black face, so he may assume he is incompetent based on the "color" of his skin, that is something Biden would do.
Canada by far is the largest exporter of oil to the US.
As far as Keystone you're aware that the piece that was killed off was only a shortcut to add to the already existing Keystone Pipeline.
.
There is another pipeline carrying the tar sands oil crossing at ND across upper MN to the Port at Duluth/Superior.
That last one you posted above goes right to my back yard. It wasn't all that long ago we all had to evacuate overnight because of a refinery fire. Excel Energy isn't losing any money because the new line got killed.
I'd be way more supportive of pipelines and energy companies in general if Congress changed laws making companies and company personnel criminally liable for ecological disasters.
Line 6B is the one I believe caused the disaster in the Kalamazoo River in MI.