OIL supply cut price effect 2023

OIL ---IMPORTANT UPDATE

Good morning everyone, here with an important update on OIL

I have been charting and using the chart below as reference since Wave #2. I was hoping we could drop more but a turn of events has occurred on the past days with the world as we all know. Its all a mess and we got to figure out how the world is going to run now.
However, as of yesterday, a game changer piece of news just dropped with talks about cutting oil production output until end of 2023.

How will this affect the economy?
-Cutting supply means shortage. Shortage means scarcity and we all know resources up in value when they are scarce. While cutting supply can lead to a shortage and eventually scarcity, the impact on a resource's value is not always straightforward. Scarcity can drive up the value of a resource in some cases due to increased demand and limited availability. However, in other cases, scarcity can lead to decreased demand as consumers may seek alternative resources or solutions. Therefore, it is important to consider the specific factors involved in determining the impact of supply, shortage, and scarcity on the value of resources.

If Saudi Arabia, along with other countries, agreed to cut oil production until the end of the year, it could have several effects on the oil market, including:

1-Increase in oil prices: By reducing the supply of oil in the market, the demand for oil could exceed the available supply, which could cause oil prices to increase.

2-Increase in demand for alternative energy sources: As oil prices rise, consumers may begin to seek alternative energy sources, such as natural gas, solar, or wind power, which could reduce demand for oil.

3-Impact on global economic growth: Higher oil prices can lead to increased inflation and higher transportation costs, which can negatively affect global economic growth.

4-Geopolitical impact: Changes in oil production can also have a geopolitical impact, as oil-producing countries may have to renegotiate their trade relationships and alliances.


My opinion on what is going on:
US is dealing with banking crisis caused by growing inflation. Higher oils = increased inflation. A real recession is about to occur, however, the world believed it was going to affect globally and it is not going to be the case. Truth is, the only ones really experiencing a recession is the US as we are witnessing the death of the US DOLLAR.


https://media.discordapp.net/attachments/1068266067648057464/1092446819461640333/feb45743-c8bb-4254-8a71-ec1aacce1646.png?width=1462&height=635