OPEC+ Is Winning The Economic War – Checkmate For The West

There are decades when nothing happens And then there are weeks when decades Happen and the tides are turning in this Economic war and now Unity within the G7 Is starting to break and using the power Of oil Russia China and OPEC they have Shifted the power away from the west and Now Putin is beginning to flip the Script and we have two big bomb shelves To cover today now the first is opec's Massive oi card that has shocked the West and the second is Japan buying Russian oil which has shocked the world In fact they are buying it above the 60 Price cap and we have to realize that This economic battle is just as Important as the fighting on the ground A big victory here could be enough to End the entire war and I want us to Flash back to 2022 when Putin made this Statement the economy of imaginary Wealth is being inevitably replaced by The economy of real and hard assets and Putin's plan is simple keep inflation High in the west and force them to raise Interest rates and as interest rates Rise the economies will be in a world of Pain because they just have so much Financial leverage just like the United States weaponizing the dollar Russia has Weaponized oil but it's not just Russia's own production but the entire Production of the Middle East so OPEC Plus just made a massive production cut

Of over 1 million barrels of oil and This has just ruled the markets we have Oil spiking up well over five percent The largest single day rise since April Last year but just take a look at the Reductions per country Saudi Arabia is Cutting output by 500 000 barrels with Kuwait Iraq and the UAE also cutting now Russia is also extending their half a Million Barrel cut to the end of the Year and what we are seeing is a United OPEC plus that's flexing their muscles To keep the oil price high and we've got To understand that this is both an Economic and political decision this Card didn't come out of nowhere and this Comes at a time when the Saudis just Built more refinance in China and France Buying LNG using the Chinese Yuan then This is part of a bombshell package That's a reminder to the West a reminder That the real power lies with commodity Producers now the financial reason for This production card is simple OPEC Wants to protect their revenues as the World moves towards a recession and it Should be obvious that the higher the Oil price the Richer OPEC will get and In fact 80 percent of Saudi Arabia's Export income comes from oil and that's Why they are setting a floor price for Crude which is likely around 80 or so The price of crude is now back above the Level when the G7 hit Russia with the

Price caps so it's easy to think that OPEC fully controls the price of oil but That is only true when it comes to the Supply side yes they can pump more oil To lower prices or they can cut Production to influence the price up and OPEC alone controls 35 of the world's Oil production and that is a lot of oil But if we add in the Russia China Alliance we get a block that Now Controls over 50 percent of global oil Supply and remember that in OPEC plus The Plus stands for Russia it isn't just The Middle East or the Gulf States but OPEC is also fighting a battle against The Federal Reserve which might sound Very weird but let's understand what is Happening if OPEC controls the supply of Oil using their production the Federal Reserve is controlling the demand for Oil using interest rates and every time Power Heights rates up he is causing Demand destruction across the world Because now money is becoming more Expensive and this puts more pressure on Oil prices countries also have no choice But to high interest rates as well or Face another dollar shortage currency Crisis remember that period back in 2022 Yes all those currencies started to Plunge against the dollar this is why All the countries all the central banks Today are hiking rates and what does This do it reduces the overall demand

For oil and causes the oil price to Create the that's why we are seeing oil Prices gradually calm down because we Are slipping into recession thanks to All these higher interest rates and That's why we are seeing OPEC right back With your production cards they know What the Federal Reserve is doing trying To bring down the price of oil using Higher rates and because of Opex cards They are now flipping the script on the FED on the supply side we have analysts Now warning of 100 oil per barrel with Goldman Sachs revising Dr Price Forecast Up to 95 dollars according to Bank of America OPEC is also not afraid of the US countering this move by releasing More Shale oil because they know they Have more room to cut and the cost of Production for shield is much more Expensive they can Outlast the United States but this is only the tip of the Iceberg defending oil revenues is only One reason and we need to dive deeper And this production car has essentially Flipped the script for potent the West Is now caught between the rock and a Hard place on one hand inflation isn't Going to come down anytime soon the OPEC Production cards have seen to that so The textbook response is to high grades Even higher to fight inflation and this Is the problem with higher oil is that It affects everything across the board

Besides just gasoline prices it jacks up The cost of everything we can see even Though the prices of goods have Collapsed services and wages are still Increasing this is already before the OPEC announcement so this production Card is going to force the Federal Reserve to keep rates higher for longer But here's the big problem the big Elephant in the room we are now facing a Banking crisis that's sweeping across The United States that has spread to Europe with the fall of Credit Suisse The financial system cannot endure Higher interest rates for much longer The banks have leveraged too much on Long-term bonds and every time Bond use Rise the losses keeps getting compounded Up in fact it's estimated that U.S banks They are sitting on 620 billion dollars Of unrealized losses that could get Worse and since the collapse of the svb We can see investors are now expecting The Federal Reserve to ease well below 4.3 percent by December 2023 and the Blue line line is the newly revised Expectations after the banking collapse The expectation is that the economy Cannot endure higher rates any longer They know something will break in the Economy that will force the Federal Reserve to cut rates sooner than later So just imagine if interest rates stay At 4.75 or go beyond five percent can

The banking sector take another blow Will another Bond impression happen Treasury yields are starting to rise and We could see another collapse in bond Values especially in the short-term Treasuries the two-year treasury has Already jumped by more than 10 basis Points immediately after the OPEC Production card and this isn't good news Because every time interest rates rise Especially on a short end this lowers Money away from the banks investors they Realize hey I can get a better return on U.S treasuries or money market funds to Hell with bank deposits I'll take my Money and run away I'll run it to Government bonds that pay me four to Five percent yield and this encourages Even more Bank runs and makes the Economy even more fragile but this is Just on the backing side if we look at What's happening with energy Security in The United States the situation gets Worse much worse and what we are seeing Is the power of a United OPEC plus the Fear of sanctions at the price caps that Essentially push two of the biggest oil Producers together Russia and Saudi Arabia they are now on the same page They have the same agenda and it's very Clear when Russia cut their production Back in March by half a million barrels OPEC didn't increase production they Stuck with their oil cards Saudi

Arabia's energy Minister issued a Warning to those who thought they would Pump more oil to save the world he said There are those who continue to think we Would adjust the agreement they need to Wait till December 2023 to demonstrate To them our commitment to the current Agreement so the world especially the West should have seen this coming it was As clear as day and we are not going to Get a repeat of the 2020 Russia Saudi Oil price War at that point of time Russia disagreed with Saudi Arabia on The production levels the Kingdom Water To cut production but Russia wanted to Sell more barrels so they began Discounting their oil until the price Went all the way down below 20 a barrel But that was in the past the Russians And the Saudis are now on the same page And the United States is trapped their Strategic petroleum reserves or the spr Is dangerously low Biden can't afford to Release more oil reserves to lower oil Prices and the spr levels are at a 40-year low hitting 371 million Barrels In reserves we are back to the 1983 Levels from an impressive high of nearly 750 million and this puts the US in a Vulnerable position and they can no Longer influence the price of oil Without compromising their energy Security but a big tragedy is how Biden Missed an opportunity to refill the spls

At a cheaper price he could have bought The oil back your prices crashed to Nearly 71 dollars and this was within The original plan to repurchase the oil Reserves at 67 to 72 dollars but the United States they decided to wait they Wanted even cheaper oil prices and Miscalculated and now OPEC is back in Full control and the US is caught in a Quandary they have a very big dilemma if They review the spr now you will fit Into even higher oil prices but if they Don't their energy security becomes a Real issue so here's the situation oil Production is now a weapon that OPEC Plus can use against the West sure the G7 can impose sanctions on OPEC oil they Can slap the price cap on Saudi Arabia But the fact Still Remains you still Need oil to power modern economies and We have reached a point where even Japan Has surrendered and is now buying Russian oil Japan a member of the G7 has Broken ranks with Dr U.S allies and is Buying oil above the price cap now of Course Japan had to get American Authorization to make the purchase they Needed the best passing of the United States to go ahead but this is still a Blow to G7 Unity so how much oil did Tokyo buy and how much did they pay in Just the first two months of this year Alone Japan bought nearly 750 000 Barrels at 70 dollars a barrel more than

A sixty dollar price cap and we are Beginning to see unity in the G7 break Apart first it was fun selling LNG to China using the Yuan now it's Japan Buying Russian oil it's bombshell of the Bombshell and those who control the Commodities are showing who's really in Charge but I also want to take this Chance to debunk the myth of green Energy taking over oil anytime soon yes The United States and Europe have told The world that they are pivoting those Renewables like solar power but it's Still a pipe dream it won't replace oil And gas at least for the next 10 to 20 Years and according to the iea global Energy generation from Renewables have Reached 28.7 percent in 2021 and that is Very impressive but notice the big get From today to 2030 the World expects and Hopes of renewable energy to hit 60 Percent by 2030 to hit the Net Zero Goals but it's not going to happen the Most Renewable Power Generation has only Been growing at a rate of one to two Percent at best and that was doing a low Interest rate environment that was During the Good Times where interest Rates were near zero percent and we are Now in an era of higher interest rates Hitting five percent and money is also Being funneled into the Ukraine conflict How much progress do you think is Possible for renewable energy today and

That's why OPEC is still in control of The game they are still in control of The energy markets at least for the next Few decades and even if Renewables pick Up the biggest winner isn't the west but China the world economic Forum published A report in February that reveals a Shocking reality China is the world's Biggest solar power generator and they Have installed a record amount of solar Capacity in 2022 bringing Dr capacity to 392 gigawatts and that's just on a solar Side when it comes to wind energy China Generated 46 percent more wind energy Than all of Europe combined so the push For renewable energy isn't really Benefiting the West they are still Heavily dependent on oil and gas we are Witnessing The Perfect Storm building is Basically the oil sanctions backfiring In real time if OPEC continues to cut Production to keep energy inflation High The Western economies will be in trouble Especially Dr banking sector the Federal Reserve can no longer ignore geopolitics Because now they are caught in all Directions we have the U.S government Sending yet another 2.6 billion dollars Of arms to Ukraine and we now have OPEC Trying to squeeze the west of energy Inflation power is truly trapped because Effectively the Federal Reserve can only Manipulate interest rates he can't Magically increase the oil supply he

Can't walk into Ukraine and the war he Can only hike or ease interest rates and If it hikes he could break the banking System and throw the wall into the next Big Global financial crisis and if it Does nothing then inflation will Continue to stay high and everyone gets Poorer so either way the economy is now Screwed and I'm betting on the Federal Reserve to keep rates high or perhaps One or two more rate hikes down the road Because I still believe that to the Federal Reserve inflation is still the Bigger problem a red card is nearly Impossible this year because OPEC plus Is now running the show they are showing Who's truly boss but let me know what You think in the comments below will Open cut production even further and how Will the West react let me know in the Comments below stay safe be sure to Smash the like button and subscribe as We navigate through these crazy times