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by MisterMower
168 days ago
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Increasing the supply of oil will lower its price. Bringing production in Venezuela back online will have this effect. Historically they have produced three million barrels per day, currently that number is closer to one million. Russia is funding its war in Ukraine with profits on thier oil production. All else being equal, this makes it harder for them to keep doing that. They reportedly spent $6 billion on air defense systems in Venezuela, not for no reason. Lower oil prices also reduce China’s dependence on Russia for energy. Reducing the incentive for those two countries two cooperate would be in US interests. Energy is fungible and lower oil prices will help reduce the cost to operate AI data centers. On the margin it will improve their profitability and reduce public backlash about rising electricity prices in the US. A large portion of the migrant crisis in the US has been driven by Venezuelan refugees fleeing Maduro’s gross mismanagement of the country. If the subsequent government can bring prosperity back to the country it also reduces illegal immigration in the US, something the current US administration clearly supports. Lots of positive things could result here and you don’t have to be a “Kissinger psychopath” to imagine them and hope they materialize. |
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