Daily Energy Report
Saudi/V8 strategy misunderstood, Aramco’s OSP, CA refinery losses, EU discusses banning Russian gas, EU grid nonsense, Australia renewables, Shell eyeing BP, India uses hydro as weapon, and more.
May 05, 2025
Chart of the Day
EOA: What Do Saudi Arabia & Allies in OPEC+ Want from Accelerating the Unwinding of Voluntary Cuts?
Bloomberg: Saudi Oil Strategy U-Turn Still Doesn’t Have an Endgame
Summary
Bloomberg’s story summary: Saudi Arabia appears to be deliberately driving down oil prices by pushing OPEC+ to increase production, but its true motives are unclear. While it claims to be punishing members like Iraq and Kazakhstan for exceeding output quotas, the actual impact seems minimal, raising doubts about that rationale. The real goal may be to offer cheap oil as a diplomatic gesture to the US ahead of President Trump’s visit. If production remains high after his departure, the move may reflect a deeper strategy to boost market share by breaking from traditional OPEC discipline.
This Bloomberg’s hit piece misses key points as explained below.