LATimes Whines "OPEC Members Need To Decide Whose Side They're On!!!"

LATimes |  On Wednesday, OPEC+ announced a dramatic reduction in production quotas, by 2 million barrels per day. According to oil ministers, the goal is to boost crude prices and “encourage investment” in the sector — making it sound like they are doing the world a favor. In fact, this is an extraordinarily harmful step that will push oil prices up — when the global economy is in a precarious state amid persistent inflation pressures.

Americans may first notice the effects at the gas pump, especially Californians already affected by some refinery shutdowns. Gasoline prices hit record highs in Los Angeles this week. A cut to global oil supply usually translates into even steeper increases in fuel prices and rising costs for goods.

The Organization of the Petroleum Exporting Countries has no incentive to drive the world into deep recession, so what are its members thinking?

Pushing up oil prices at this moment is an expression of support for OPEC+ member Russia, presumably aiming to build a deeper relationship between this major oil producer and core OPEC member states, most of which are in Africa and the Middle East.

That strategy already appears thoroughly wrongheaded. The likelihood of Russian defeat in Ukraine, increasing daily with Ukrainian advances, will change the global picture for oil considerably, and OPEC members need to decide whose side they are on for what comes next.

If you question Russia’s fate on the battlefield, look carefully at reports from the front lines from Russian military bloggers on Telegram and other messaging channels. It is an interesting irony that Ukraine, a free country with a free press, has strong operational discipline when it comes to the use of social media close to the conflict — and it’s from Russia, an authoritarian country with tightly state controlled and censored media, that we see a flood of videos, text updates and maps that show what is really going on.

If OPEC’s leaders were paying attention, they would see that Russian forces are in the process of being defeated in several regions in the air and on the ground. The Ukrainians have more drones, better armor, longer-range artillery and higher morale. Russian forces are greatly depleted and increasingly in danger of becoming trapped and overwhelmed on multiple fronts.