What OPEC+ Oil Cuts Mean for the Global Economy and Geopolitics

The Breakdown

Blockworks

Investing, Business

4.8 • 786 Ratings

🗓️ 7 October 2022

⏱️ 17 minutes

🔗️ Recording | iTunes | RSS

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Summary

This episode is sponsored by Nexo.io, Circle and FTX US. As inflation rages, the global economy slows, and the U.S. releases more and more oil from its Strategic Petroleum Reserve, OPEC+ has decided to decrease oil output. The move happens in spite of significant pressure from the Biden Administration. NLW discusses what it means for economic prospects as well as for shifting geopolitical alliances. - Nexo Pro allows you to trade on the spot and futures markets with a 50% discount on fees. You always get the best possible prices from all the available liquidity sources and can earn interest or borrow funds as you wait for your next trade. Get started today on pro.nexo.io. - FTX US is the safe, regulated way to buy Bitcoin, ETH, SOL and other digital assets. Trade crypto with up to 85% lower fees than top competitors and trade ETH and SOL NFTs with no gas fees and subsidized gas on withdrawals. Sign up at FTX.US today. - I.D.E.A.S. 2022 by CoinDesk facilitates capital flow and market growth by connecting the digital economy with traditional finance through the presenter’s mainstage, capital allocation meeting rooms and sponsor expo floor. Use code BREAKDOWN20 for 20% off the General Pass. Learn more and register at coindesk.com/ideas. - “The Breakdown” is written, produced by and features Nathaniel Whittemore aka NLW, with editing by Rob Mitchell and research by Scott Hill. Jared Schwartz is our executive producer and our theme music is “Countdown” by Neon Beach. Music behind our sponsors today is “The Now” by Aaron Sprinkle and “The Life We Had” by Moments. Image credit: William_Potter/Getty Images, modified by CoinDesk. Join the discussion at discord.gg/VrKRrfKCz8.

Transcript

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0:00.0	Welcome back to The Breakdown with me, NLW.
0:09.2	It's a daily podcast on macro, Bitcoin, and the big picture power shifts remaking our world.
0:15.0	The breakdown is sponsored by nexo.io, circle, and FtX, and produced and distributed by CoinDesk.
0:22.8	What's going on, guys? It is Thursday, October 6th, and today we are talking OPEC.
0:28.4	Before we get into that, however, if you are enjoying the breakdown, please go subscribe to it,
0:32.4	give it a rating, give it a review, or if you want to dive deeper into the conversation,
0:36.1	come join us on the Breakers Discord.
0:38.2	You can find a link in the show notes or go to bit.ly slash breakdown pod.
0:42.2	Also a disclosure as always, in addition to them being a sponsor of the show, I also work with
0:46.4	FTX.
0:47.7	So, yesterday Dimitri Kofinas, the excellent host of Hidden Forces, retweeted a Bloomberg
0:53.7	Middle East breaking story.
0:55.8	The headline read, OPEC Plus panel proposes a cut of 2 million barrels a day to its output
1:01.5	as they seek to halt the slide in oil prices. Dmitri commented, OPEC basically just raised rates.
1:09.6	So today we're getting into what he meant by that comment,
1:12.2	what happened with oil yesterday, and what it means for the economy and geopolitics.
1:16.6	Let's start with the barest bones of background. OPEC was formed in 1960 by Iran, Iraq, Kuwait,
1:23.0	Saudi Arabia, and Venezuela. The organization's goal is to coordinate oil production across
1:27.4	nations to ensure that competition between oil-producing nations doesn't undercut price Arabia and Venezuela. The organization's goal is to coordinate oil production across nations
1:27.7	to ensure that competition between oil-producing nations doesn't undercut pricing power.
1:32.7	Membership has fluctuated over the decades, including various Middle Eastern African and
1:36.2	South American nations. Saudi Arabia serves as the leading member with Nigeria, the United Arab
	...

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