Greed! OPEC+ cuts oil supplies to the world as prices fall.
So, the thing is we can't say greed when there's a legit supply issue. Their price is the only control on demand. So if they have a short supply and sell it at a low cost, more people will buy more of it. Then we run the fuck out. See the problem here?
They don't have a short supply. They cut intentionality.
@TyKC So dependence on Russian oil that is now being strategically removed from the market due to war is not a thing? Nor is bidens actions to reduce our output/growth of domestic production over the last 2 years? Maybe they have cut. If it was mandated, how can you blame the oil companies? And regardless of how the shortage happened, it happened. It's here. And until the supply side is corrected, making prices inelastically low WILL lead to massive shutdowns and rationing. High prices ensure that the available oil goes to the most valuable use possible. If the use isn't extremely valuable, the customer won't pay the price. It sucks, and it's not fair that we're here, but this is where we are. And blaming the oil companies for doing literally the only thing they can to keep the machine running isn't helpful. Blame the fucks who created the situation. Biden and the collectivist west.
Uhh, that is free market. If you control supply (and BeijingBiden has handed them that control) then if prices dip you curtail production. Theirs is not a gov'mt program that doesn't have to work. It must turn a profit, and the more the merrier.
It is not always the case that selling more at lower return means more income. And, their focus must be on their return/income, not the sorry Arsed twits that don't strive for energy independence.
Doesn't make sense. So, you sell less to make less.
@TyKC Uhh, no, this is a free market. If they can control supply to the market (and since so many countries are led by idiots who do not pursue energy independence) then they control price. If you drop your supply and demand stays the same, then price that needs to be paid must go up -- buyers have to compete for the now lower supply.
This works only when market supply is limited. In an actual free market (i.e., no cartels and no stupid gov'mts) price and supply will vary all over the place -- just like stock market.
I suspect their plan is to lower supply until price hits what they want and then they will lock in a contract with buyers who must assure themselves a steady supply. THEN, they increase supply and watch as market price drops but their contract price stays the same.
They are looking to trap the idiots who let themselves become vulnerable.
Good on them.