The Oil Price Spike That Wasn’t

Global production is well placed to cope with Iranian disruption

WSJ editorial. From June 16. Excerpts:

"Brent crude popped from $66 a barrel or so to a high of $78 last week, but by Monday it was back below $73. The non-panic owes to ample global supply"

"Saudi Arabia has been producing more, as have Guyana, Brazil and Canada. U.S. production hit a record 13.5 million barrels a day in March. A sustained price of $70 or above would be welcomed by U.S. frackers, some of which have been taking rigs offline as prices slipped toward $60."

"oil prices shouldn’t influence strategic decisions about whether to help Israel win its war, or whether to further sanction Russia."

"the Biden team relaxed sanctions on Iranian oil exports, giving Tehran tens of billions of dollars to finance its nuclear program and proxies."

"Russia last year exported on average 7.5 million barrels a day, a mere 400,000 less than in 2021."

"most Russian crude is transported on “shadow tankers” not covered by the cap."