October 10

10/10 - If you are looking for an energy villain, OPEC is front and center. The Saudi’s and the United Arab Emirates have stonewalled President Biden’s requests to pump more oil. Instead, with WTI crude oil prices dropping to lows of $76.71 per barrel in late Sept (from highs of $122 in June), OPEC announced that it would cut production by 2M barrels per day, in an effort to put a floor under crude oil prices - and possibly even to help the Russians fund their war. This is the result of 3 consecutive administrations - Obama, Trump, and Biden - pulling back from Middle-East security commitments. Israel (of all countries) is now providing the Saudis and the UAE with the military tech to defend against Iranian missiles and drones. As a result, the U.S. no longer has the presence, nor the political capital, necessary to bring pressure on OPEC. Spot crude futures closed a $92.64 per barrel on Friday (10/7).