Recent comments in /f/worldnews

Phiarmage t1_j8czqry wrote

Tl;Dr: Record profits appear unproportional and exploitative in regard to recent inflation.

Record profits within the oil industry and the subsequent drop in prices after quarterly SEC filings were published suggest that the original record price increases were not inflation. More than likely the majors took advantage of several aspects in the world economy during the last 3.5 years.

Increases in profits were not proportional to inflation. Hell, even supply and demand curves, in conjunction with rig count statistics, suggest production rose with demand until 2022, at which point companies slowed new drilling on already obtained permits (federal and state).

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silverfox762 t1_j81o9u8 wrote

Yeah, he's right about a bunch of stuff, he's just wrong that "it's all going to fall apart in a matter of days". Things will happen negatively, in many markets, but corporate profit motive in the west and Asia will do its damnedest to find other sources of whatever products and resources, and will find ways to mitigate things... and they will largely succeed. What will happen is wealthy people and wealthy countries will continue to be wealthy and get wealthier, and everyone else will gradually increase their speed circling the drain.

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Varolyn t1_j81cv7n wrote

But Russia really won’t benefit from this. Urals is still selling much lower than Brent or WTI and cutting oil production will only hurt their own revenues.

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