OPEC+ in a Donkey-Sized Oil Price War: Is This Thing On?!

OPEC+? More Like OPEC Uh Oh!

Alright alright settle down everybody! Donkey's on the scene to tell you all about this OPEC+ shebang. Apparently they're in some kinda... *oil price war*? Sounds messy! It's like when Shrek and I try to share a parfait – somebody always ends up with mud in their eye! These guys led by Saudi Arabia are pumpin' out more oil like 411,000 barrels a day! That's a lotta oil y'all. Makes me wanna open a Donkey brand gas station in Far Far Away.

Saudi Arabia: The Ogre of Oil?

So why are the Saudis actin' like Shrek after someone insults Fiona? Bank of America says they're tryin' to take back market share from those fancy pants U.S. shale producers. They also wanna teach some OPEC+ members a lesson for not playin' nice with the production cuts. And get this – low oil prices would make Trump's tariffs not so bad. It's all connected like a plate of waffles! As Shrek says 'Ogres are like onions' – layers man layers!

Hold on! There is Shale Here!

Goldman Sachs (fancy name!) thinks the Saudis are strategically disciplining U.S. shale supply to demand more oil. OPEC+ might boost supply again in July. This oil price war is the 3rd one they've had in 30 years! According to a guy named Blanch it might last for 12 18 months he called this war a 'slow burn'. That's almost as long as it takes to get to Duloc! 'Are we there yet?' I keep asking!

U.S. Shale Shakin' in its Boots?

Looks like those U.S. shale folks are startin' to sweat. With low oil prices tariffs and a possible recession they're pullin' back. The CEO of Diamondback Energy (whatever that is) says U.S. shale production might be headin' downhill which is no bueno for them! It's like when I try to do a backflip – never ends well.

Diamondback Speaks... Whatever!

The President of Diamondback said this oil price doesn't work! Adjusted for inflation there have only been two times oil has been this cheap. Diamondback would halt production growth with prices in the $40s and slow output in the $50s. Oil prices need to be in the mid to high $60s to grow production.

Is it a Swamp Gas Crisis?

Bank of America thinks oil prices could hit $58 per barrel but are maintaining a forecast of $62 for 2025. Goldman Sachs thinks Brent and U.S. crude averaging $60 and $56 for the rest of 2025. Diamondback would halt production growth with U.S. crude prices in the $40s and output would slow with prices in the $50s. Oil prices need to be in the mid to high $60s and on a path to $70 for production to grow. It's like the blind leading the blind! Anyway what does this all mean? It means we gotta keep an eye on those oil prices! Who knows? Maybe we'll all be ridin' dragons instead of drivin' cars soon! Just remember as I always say 'Nobody move! I got a dragon here and I'm not afraid to use it!'