OPEC+'s Production Surge: A Disturbance in the Force...Of Oil Prices!

A Great Disturbance in the Oil Market

The Force is strong with OPEC+ but their recent actions have caused a great disturbance in the oil market. U.S. crude oil futures have fallen more than 1% a direct result of OPEC+ agreeing to surge production for a second consecutive month. It is as if they are testing my patience… and the resilience of the global economy. U.S. crude now sits at a paltry $57.59 a barrel a price so low it insults my Imperial sensibilities. Brent crude is not faring much better wallowing at $60.60. These prices are far too low someone needs to feel the wrath of the dark side.

The Empire Strikes...at Oil Prices!

The dark side of the Force is not as weak as these oil prices might suggest. This year oil prices have fallen more than 20%. OPEC+ those eight producers led by Saudi Arabia decided to boost output by another 411,000 barrels per day in June. A surprise to be sure but a welcome one for those foolish enough to rely on such volatile commodities. They dared to increase production in May by the same amount and now think that I will not take revenge. They have much to learn about the power of the Dark Side.

Goldman Sachs' Prophecy: A Miserable Prediction

Goldman Sachs in their infinite wisdom predicted a mere 140,000 bpd increase. A pathetic forecast! OPEC+ is bringing over 800,000 bpd of additional supply to the market over two months. Their lack of vision is… disturbing. They lack the foresight that only a Sith Lord can provide. Perhaps they should consult the Force or at least a better economic model.

Tariffs: A Trade Dispute or a Trap?

The biggest monthly loss since 2021. U.S. President Donald Trump's tariffs are creating fear. Fear leads to anger anger leads to hate hate leads to…falling oil demand. It's a vicious cycle and it seems even the galaxy's economic forces are vulnerable to such political machinations. I almost feel bad for them. Almost.

The Oilfield's Lament: Investment Declines

Oilfield service firms such as Baker Hughes and SLB are crying about investment declines. Lorenzo Simonelli of Baker Hughes blames an oversupplied market tariffs and weakness in Saudi Arabia. These firms can not handle a small amount of pressure. Their whining is a distraction from more important matters like crushing the Rebellion.

A Forecast of Mediocrity

Chevron and Exxon's first quarter earnings fell just like those pesky Rebels being blasted out of the sky. Goldman forecasts U.S. crude and Brent prices will average $59 and $63 per barrel respectively this year. A mediocre forecast for a mediocre year. Perhaps the dark side of the Force could provide better returns… We shall see.