Oil Jumps 7% After Surprise OPEC Production Cuts; Russia & India Adopt New Oil Benchmark, ABANDON European "Brent" crude pricing
Prices for a barrel of oil jumped 7 to 8% last night in pre-market trading, after OPEC+ announced a reduction in oil production of about 1.1 Million barrels per day. | As this story is written, 10:04 AM EDT on April 3, 2023, The West Texas Intermediate contract jumped 5.74% to $80.01 a barrel, while Brent jumped 5.67% to $84.42. This will translate into higher prices at the gasoline pump for cars and the diesel pump for trucks, which then causes a rise in consumer prices for everything that has to move by truck. This type of demand inflation cannot be halted by central banks raising interest rates. NEW PRICING MECHANISM More shockingly, the top oil producers in Russia and in India agreed to change the market pricing mechanism they use to price oil transactions. The largest oil producer in Russia and India's top refiner have agreed to adopt the Asia-focused Dubai oil price benchmark. They have abandoned the Europe-dominated Brent benchmark. The signals are changing. This will make it much easier for countries to buy oil WITHOUT USING THE U.S. DOLLAR! That's huge. They just told the US / Eurotrash to FOAD. (F*ck-Off and Die) Basically, they're sizzling the West' bacon and there's nothing [the U.S.] can do about it short of war.