{"id":63705,"date":"2022-10-06T11:07:42","date_gmt":"2022-10-06T16:07:42","guid":{"rendered":"https:\/\/olduvai.ca\/?p=63705"},"modified":"2022-10-06T11:07:42","modified_gmt":"2022-10-06T16:07:42","slug":"war-breaks-out-as-opec-takes-on-the-entire-west","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=63705","title":{"rendered":"War Breaks Out As &#8220;OPEC+ Takes On The Entire West&#8221;"},"content":{"rendered":"<header class=\"ArticleFull_header__Eyn7V\">\n<h3 class=\"ArticleFull_title__MEgbb\"><a href=\"https:\/\/www.zerohedge.com\/commodities\/war-breaks-out-opec-takes-entire-west\">War Breaks Out As &#8220;OPEC+ Takes On The Entire West&#8221;<\/a><\/h3>\n<\/header>\n<div class=\"NodeContent_mainContent__t4rGu\">\n<div class=\"NodeContent_body__6iJOI NodeBody_container__hI8PI\">\n<p>This time, it&#8217;s war.<\/p>\n<p>One day after we wrote that &#8220;<a href=\"https:\/\/www.zerohedge.com\/markets\/opec-taking-fed-and-goldman-buying-every-barrell-it-can-find\">OPEC Is Taking On The Fed<\/a>&#8220;, the oil cartel did just that when it announced that it was cutting output by 2mmb\/d the despite a furious diplomatic campaign by the White House hoping to avoid the inevitable, and warning that any cut would be seen as a &#8220;hostile act&#8221; by the Soros administration. Of course, despite Biden&#8217;s fondest wishes that OPEC+, which of course counts Russia among its members, would help Demcrats win the midterms by keeping the price of gas low, this was not going to happen&#8230;<\/p>\n<div class=\"twitter-tweet twitter-tweet-rendered\"><iframe id=\"twitter-widget-0\" class=\"\" title=\"Twitter Tweet\" src=\"https:\/\/platform.twitter.com\/embed\/Tweet.html?dnt=false&amp;embedId=twitter-widget-0&amp;features=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%3D%3D&amp;frame=false&amp;hideCard=false&amp;hideThread=false&amp;id=1577844131178717186&amp;lang=en&amp;origin=https%3A%2F%2Fwww.zerohedge.com%2Fcommodities%2Fwar-breaks-out-opec-takes-entire-west&amp;partner=tweetdeck&amp;sessionId=dfb0da16ca641f31b2b250a5b186d4ba0085ee72&amp;siteScreenName=zerohedge&amp;theme=light&amp;widgetsVersion=1c23387b1f70c%3A1664388199485&amp;width=550px\" frameborder=\"0\" scrolling=\"no\" allowfullscreen=\"allowfullscreen\" data-tweet-id=\"1577844131178717186\" data-mce-fragment=\"1\"><\/iframe><\/div>\n<p>&#8230; and not just for political reasons, but also due to the Fed&#8217;s increasingly challenging monetary policy. Yesterday, we\u00a0<a href=\"https:\/\/twitter.com\/zerohedge\/status\/1577683767283838976?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1577683767283838976%7Ctwgr%5Ec24b88a65cee9f9c6b485d6a087da6651dd68a6f%7Ctwcon%5Es1_&amp;ref_url=https%3A%2F%2Fpublish.twitter.com%2F%3Fquery%3Dhttps3A2F2Ftwitter.com2Fzerohedge2Fstatus2F1577683767283838976widget%3DTweet\">summarized the dynamic as follows<\/a>:<\/p>\n<ul>\n<li>Fed hiking rates to crush oil demand and send US economy into recession fast.<\/li>\n<li>OPEC+ cutting supply to offset reduced US oil demand and send US economy into recession even faster so Fed is forced to cut rates.<\/li>\n<\/ul>\n<p>This morning, Rabobank&#8217;s Michael Every\u00a0<a href=\"https:\/\/www.zerohedge.com\/markets\/opecs-action-testimony-staggering-us-geopolitical-and-geoeconomic-error\">expanded on this<\/a>, laying out the feedback loop OPEC and the Fed find themselves in:<\/p>\n<blockquote><p><strong>Fed pivot is possible against a backdrop where oil prices march higher on supply destruction in response to demand destruction as monetary policy is tightened&#8230;\u00a0<\/strong><\/p><\/blockquote>\n<p>So what happens next? For one answer we go to Goldman Sachs which overnight expanded on the\u00a0<em><strong>&#8220;OPEC+ takes on the Fed<\/strong><\/em>&#8221; concept and revised it to &#8220;<em><strong>OPEC+ takes on the West<\/strong><\/em>&#8221; (available to pro subs in the usual place)&#8230;<\/p>\n<p><a href=\"https:\/\/www.zerohedge.com\/s3\/files\/inline-images\/OPEC%20west.jpg?itok=NktFR6lY\" data-image-external-href=\"\" data-image-href=\"\/s3\/files\/inline-images\/OPEC%20west.jpg?itok=NktFR6lY\" data-link-option=\"0\"><picture><img loading=\"lazy\" decoding=\"async\" class=\"inline-images image-style-inline-images\" src=\"https:\/\/assets.zerohedge.com\/s3fs-public\/styles\/inline_image_mobile\/public\/inline-images\/OPEC%20west.jpg?itok=NktFR6lY\" alt=\"\" width=\"500\" height=\"155\" data-entity-type=\"file\" data-entity-uuid=\"5d8ff2b0-b75a-4e50-9a15-44dd1511481b\" data-responsive-image-style=\"inline_images\" \/><\/picture><\/a><\/p>\n<p>&#8230;. in which Goldman writes that the OPEC+ cut\u00a0<strong>represents a return to the Old Oil Order, where core-OPEC acts under the rational behavior of a dominant producer with pricing power:\u00a0<\/strong>&#8220;In that sense, while exceptional, this cut is also logical as it maximizes the group&#8217;s revenues today with minimal sacrifice of future profits.&#8221;&#8230;<\/p>\n<p>\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>War Breaks Out As &#8220;OPEC+ Takes On The Entire West&#8221; This time, it&#8217;s war. One day after we wrote that &#8220;OPEC Is Taking On The Fed&#8220;, the oil cartel did just that when it announced that it was cutting output by 2mmb\/d the despite a furious diplomatic campaign by the White House hoping to avoid [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[3,5],"tags":[303,534,25704,827,3650,862,4318],"class_list":["post-63705","post","type-post","status-publish","format-standard","hentry","category-energy-2","category-geopolitics","tag-fed","tag-monetary-policy","tag-opec-2","tag-united-states","tag-us-federal-reserve","tag-war","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/63705","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=63705"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/63705\/revisions"}],"predecessor-version":[{"id":63706,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/63705\/revisions\/63706"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=63705"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=63705"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=63705"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}