OPEC+ Fuels Up: More Oil, Less Drama (Hopefully!) - My Take

Oil Oil Everywhere But Not a Drop to…Stress Over?

Okay Swifties let's talk about something *slightly* less sparkly than my Eras Tour wardrobe: oil. Apparently these eight big shot countries in OPEC+ – including Russia and Saudi Arabia no big deal – decided to pump up their crude oil production by a whopping 548,000 barrels per day. I know numbers! It's giving me 'All Too Well' flashbacks to trying to calculate the cost of vintage scarves online. But basically they're unwinding some of those supply cuts they made. Remember when I said 'Band Aids don't fix bullet holes?' Well sometimes more oil kinda does fix…economic…holes? I'm trying here okay?

Why All the Extra Liquid Gold?

So why the sudden surge in oil? Apparently the OPEC Secretariat folks are saying it's because the 'global economic outlook' is 'steady' and the market is 'healthy.' Sounds like a PR statement straight out of my 'Reputation' era! But in all seriousness they think there’s a good demand for oil and not enough of it sitting around in storage (that’s the 'low oil inventories' part). Which is kinda like saying 'There's a Blank Space baby and we’re gonna fill it…with oil!'

The Voluntary Cuts: A Tale of Two Strategies

Here's where it gets a little more…'complicated,' as in relationship level complicated. These eight countries were already doing *two* different sets of voluntary production cuts. One was a big cut of 1.66 million barrels per day which is supposed to last until the end of next year. The other was an *additional* 2.2 million barrels per day cut that was supposed to end in the first quarter. It's like they're playing 'the old Taylor can’t come to the phone right now' with oil production – constantly changing things up! At first they were supposed to boost production by 137,000 barrels a day until 2026 but that didn’t last long because they said 'I’m the problem it’s me.' Then they tripled it to 411,000 and now they’re going even *higher*. Talk about a plot twist.

Summer Lovin' and Supply Chain Woes

Of course the prices got a little boost because of the summer season – people are hitting the road the skies the seas you know livin' that '22' lifestyle. But then there was also that little 12 day 'war' (I use the term loosely) between Israel and Iran. That threatened to disrupt oil supplies which definitely sent the prices higher. It's like when you're planning a perfect beach day and then BAM! A sudden storm rolls in. Thanks a lot Middle East always keeping us on our toes – or should I say 'high heels sneakers and bare feet on the tiles'?

Oil Prices: A Love Story (or a Tragedy?)

So where did all this leave us? At the end of Friday's trading oil futures settled at $68.30 per barrel for the September expiry Ice Brent contract. Which is just a bunch of financial jargon for 'oil's still expensive but not *insanely* expensive.' And front month August Nymex WTI was at $66.50 a barrel. So what I'm gathering is we can all breathe a little easier knowing that OPEC+ is making sure that there is enough oil for the gas that we need to live our best lives but it's not so cheap that we are going to be wasteful with it. Because as we all know it's nice to have a friend.

Shake It Off (the Uncertainty)

Look I'm not an economist – I just play one on Twitter (kidding!). But hopefully this whole oil situation becomes a little less 'Out of the Woods' and a little more 'Welcome to New York.' Translation: Let’s hope for stability predictability and maybe just a *little* bit of sparkle even in the world of crude oil. Now if you'll excuse me I have a world tour to plan and some cats to cuddle. *Drops mic*.