The “non-Western Bloc” holds some 70% of the world’s crude oil reserves, 80% of natural gas reserves, and 43% of coal reserves (probably a lot more given that China has Indonesian coal wrapped up).
It’s called the Shanghai Cooperation Organisation… and the head choppers just joined. Long-term readers will recall we suggested as much two years ago. Well… tada!
Saudi Arabia’s King Salman bin Abdulaziz approved a Memorandum of Understanding (MoU) that grants the Kingdom the status of a dialogue partner in the Shanghai Cooperation Organization, the official Saudi Press Agency (SPA) reported on Tuesday.
In late 2021, following the absolutely atrocious withdrawal of US troops from Afghanistan (leaving US citizens on the ground, including those who worked for the US) and the resulting subsequent slaughtering of “sympathizers” and their families (oh, you didn’t see that on mainstream media… weird), we explained that there were two key countries to focus on: Saudi Arabia and Taiwan. The reason? Both relied on US protection for their very existence. It wasn’t even a month after the US withdrawal in Afghanistan that the Saudis struck a military deal with Russia, moving rapidly to secure their new military partner. Their main economic partner, we already know, is now China.
As I have said repeatedly, where trade goes so go military and political alliances.
Now, realize this war is fought on multiple fronts. As the West attempts to destroy demand for oil, OPEC+ fights back.
Of course they did.
OPEC+ announced a surprise oil production cut of more than 1 million barrels a day, abandoning previous assurances that it would hold supply steady and posing a new risk for the global economy.
While the US strategic Oil Reserve chart now looks like an NFT price chart.
But wait, it gets better. While the head choppers cut output by 500,000 b/pd from next month, Iraq, feeling left out, decided to a “voluntary oil production cut” of 211,000 b/pd as of May till year-end. Then Kuwait “voluntarily” cut production by 128,000 b/pd also from the beginning of May. Oman, feeling lonely, followed with a “volutantary” 40,000 b/pd cut from the beginning of May. And one more. The UAE cut 144,000 barrels of the stuff from May, too. Oh, I nearly forgot one — Russia. The Russkies will also cut 500,000 gallons of production this year.
All up, we’re looking at over 1.5m b/pd coming off market. If this isn’t a collective middle finger, then I don’t know what is.
MCViewPoint 
