From A Reader On Recent Saudi "Surprise Cut" -- April 4, 2023

 From a reader opining on recent "surprise cut."

A few more puzzle pieces to consider...

Remember that the Ghawar field has been producing for over 70 years now.  It produces around 2/3 of the Saudi oil.  So, as that field wanes, it really makes a difference.  Largest single field in the world.

You'll recall several years ago, the Saudis had pumped billions of dollars into ? to increase production.  There was quite a buzz about that , but really no appreciable pump bump.  (Like that?  I think I just invented the term.  (;>)

Anyway, the Saudi capacity was quite the disappointment when they were going to do their IPO.  Again, those are highly controlled numbers, so who actually knows.

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As far as Chinese imports - Russia can handle that, easily.  (;>)  And, whenever Biden releases oil from the SPR, the Chinese are buying.  Oy vey.

This is a poker game with side pots, calcuttas and god knows what other backroom bets.                                                                                         

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Venezuela has more proven reserves than the Saudis.  So, our little protesting, pierced, pink-haired, autonomous zone-promoting miscreants probably have a superb idea for liberating that oil in an environmentally-friendly fashion while conforming to the true tenants of socialism or communism or some such.

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Absolutely nothing that the Saudis, Chinese or Russians will do with oil will surprise me. None of them would spit on a burning Biden, and may well have formed an invisible troika.  There's too much money at stake - too many agendas.  Too easy to move product and money around off the books.  Somebody has sure buried the story of how Malaysia is exporting a million barrels more per day than they produce.  (;>)  And, that's just small potatoes.