he doesn't want to see this nopec bill he's trying to tamp it down. to your point, brighting if they cut and prices rise strongly, they won't be able to hold back congress they'll get rolled >> i agree if we see a significant rise in retail gasoline prices, i do think it's going to be hard to hold back on product export restrictions again, i don't think that everyone in the white house wants to go down this path, but i do think if we see this rise in prices, we should watch for that policy response >> well, the whole thing just feels like it's on the verge of a major escalation i say that, because we obviously had covid, everybody went into their own corners. sudden we we come out, u.s. is releasing 180 million barrels, france and other countries been -- are doing that the saudis believe the market is manipulated. now this production cut, with the threat of a possible white house next move, when does this end? >> brian, the other issue is we're heading into the december 5th, 6th packet of sanctions we have the big sanctions of russian olympic exports

to the kingdom, or perhaps the nopec bill being passed into law. a big if but it would certainly be unwelcome in saudi arabia. dani: the other variable is china, of course. how surprised was the market by xi jinping doubling down on his covid zero strategy? paul: i think in some ways the market took this sort of in its stride. the consensus, at least amongst oil traders for a while now, has been that china is not going to ease its covid zero restrictions anytime soon. perhaps not until march of next year or even beyond. i would say it is pretty much the biggest thing at the moment affecting the markets's outlook. a lot of oil bulls were saying a few months ago, wait for china to reopen and you will see oil consumption in the country go through the roof and that will send prices back to $120 a barrel and perhaps higher. but that obviously has not happened. i think will traders are reconciled to the fact that china will be under covid zero for at least several more months if not even longer. manus: it's interesting that will has snapped higher this m

dani: does that mean nopec legislation, the chances of that are pretty low?ita: we think the chances are pretty low, especially ahead of the mid term and if it it's not done before the mid term it restarts in january and may lose momentum. there are a few options for the u.s. there's the possibility of nopec and talk of reducing arms sales. that's on the political side. on the oil side it's focus on the s.p.r. there are rumors about a lot of big numbers but i think it is going to be a smaller number that ultimately gets released because of what the constraints are for running down the s.p.r. continuously. manus: we're still trying to understand what the price cap will be from europe. alexander novak made it clear to me it would mean a reduction in production for russia in the near term on a price cap. extrapolate for me and the market this morning your best estimate of impact of price cap and the fall of crude, does it just go in bunkers? does it gooff shore? where does the russian goal go to when it's got new sanctions on deck and the price cap? amrita: in t

grassley says he's nopec bill gives the u.s. power to sue the group will oil producing countries for abusing their power over the global market. we want them to abide by the same premarket rules that we do in the country in our country. >> the white house as opec's upcoming cuts not only hurt consumers but will help fuel putin's war in ukraine. and that is a problem. wednesday, u.s. energy secretary jennifer granholm said no pact. >> is among several options under consideration. president believes there should be. >> consequences. we want to make sure that those consequences don't have negative impacts. senator grassley says his bill will help stop opec's pattern of abuses, it's it's unlikely to help lower gas prices right now. the american petroleum institute says the only way to do that produce more oil in the u.s. use our own resources. frank macchiarola says suing opec won't work, would really put at risk the global supply chain. grassley says he wants no pet passed immediately after the midterms, but senate majority leader

congress, and the one phrase that strikes angst in the main bulwarks of opec is nopec, that is one aereign is in a lawsuit, and that changes the game for congress. tom: manus cranny in vienna for that important meeting of opec+, implications of potentially 2 million additional barrels per day not on the markets. and implications when it comes to the u.s. it is perhaps the biggest speech of her career, u.k. prime minister liz truss addresses her party conference today. we are live from birmingham for that speech. this is bloomberg. ♪ as a business owner, your bottom line is always top of mind. so start saving by switching to the mobile service designed for small business: comcast business mobile. flexible data plans mean you can get unlimited data or pay by the gig. all on the most reliable 5g network. with no line activation fees or term contracts. saving you up to $500 a year. and it's only available to comcast business internet customers. so boost your bottom line by switching today. comcast business. powering possibilities. ™ francine: local back to the open. 30 minutes into the e

what ab -- but the bottom line, that fist bump moment between biden and bin salman, nopec is back on the table. you want to cut barrels off the table, because i have a lot of oil in the bunkers in the svr, and i will release it. those are the messages from the united states of america. francine: it does feel like it is so much more political. there is a great piece looking at the intro links between the decision and what it does to coffers in russia. saudi's topsoil official -- top oil official saying it is only adding to the uncertainty. manus: that uncertainty is what is irking everybody. let's listen to his royal highness, prince abdul-aziz bin salman. >> lack of clarity. and that we still have two months to go for these to be activated. these two months would be a period of uncertainty. we don't see what would be the reaction of the market participants. manus: he reaffirmed his message that the markets were fragile and illiquid. i asked if this was the start of jumbo cuts to come, going listen to the whole interview -- go and listen to the whole interview, it is about central ban

gulfstream on guard about the fact for decades there's been this congressional discussion about a nopecich means those part of the cartel would have to abide by u.s. antitrust law and that would rain in opec. so this is a punchy statement if you think the white house discussing this with congress. it came up earlier in the year in may. but also the fact there could be more stocks coming from the spr. guy: do we need to see this response to the prism of the midterms? i'm assuming this president is not keen on gasoline prices coming up from here. >> technically on paper this is a 2 million barrel a day cut. it sounds huge. by our calculations just under nine out of thousand barrels a day. that's a lot but saudi arabia at this moment is pumping at a record high and there was question for months about how long it could sustain this record high. there pumping 11 million barrels a day. i think that's important when you look at the contact. the issues of the administration or the timing of this and the optics. the president was there in saudi arabia for this landmark meeting. and more oil will

the most powerful tool in bidens arsenal to combat this type of behavior from opec is the so-called nopechere are plans to table this to return. it is a bit of a can of worms. we could see more discussion of that again going forward. dani: thank you very much. turning to china and our president xi jinping is all but certain to secure a third term in power at the communist party congress this month, observers will look for any indication china might move away from its covid zero policy. xi will continue with the common prosperity drive. that prosperity has roiled the tech and education sectors. let's bring in the greater china editor jenny marsh. what are we expecting heading into the people's party congress? >> you know, i think there has been this idea that in the lead up to the congress that xi jinping has been reluctant to changes. common prosperity has been calibrated back a bit. a lot of the wall street banks are predicting that once the congress, passes, xi jinping and his government will have a freer hand to take bolder steps to shore up the economy. a better investing environment.

that legislation is called nopec. it's a small shift on the biden administration's part, although i spoke with some democrats and they don't think it's going far enough. ro khanna, the democratic from california said he thinks biden should call the king of saudi arabia himself and tell him he has five days to reverse this decision, reverse these cuts and, if not, tell them they're going to work with congress to try and pass some sort of ban on limiting even going as far as saying limiting the air parts they provide to the air force in saudi arabia and limit the military arms that they give to the country. so it's really hard to see what exactly the biden administration is going to do. so far it's been threats, but very real threats. what i'm hearing are solidified and significant and if they will follow through on the they don't turn this around. of course, a lot of democrats also arguing that saudi arabia is a third world country and that they shouldn't be working with them or using their threats to have a grip on oi

. >> dana: explain what the nopec bill is. >> it would remove sovereign immunity from sherman antitrust investigations. right now the united states can't sue saudi arabia, mexico or kuwait for managing supply. if they pass this bill they could. the president could do that. this bill was used to break up standard oil in 1911. the reason it's bad if i wanted to kill shale oil, i would pass this and outlaw swing production. the dirty little secret. the necessary evil in the oil markets, dana, is that you have to have somebody trying to keep oil prices stable or you see these wild boom/bust prices that we've seen over the last 20 years. remember just two years ago when oil prices were collapsing, president trump was becoming sort of the king of the opec deal. he dropped his aversion to opec and organized a big cut to rescue the shale industry. the only worse than opec managing the oil market is opec not managing the oil market. suing them is deeply unwise and short sighted. >> dana: what is your forecast for what everyday americans will be looking at in terms of gas prices and home heating

one is to support this so-called nopec bill which would fund the antitrust suit against the big oil producersn saudi arabia. what do you make of that? >> that idea has been bopping around congress for decades now, paul, and the reason no one has ever pulled the pin is because it is an absolutely terrible idea, and even most of the members of congress understand that. the problem here is, yeah, you want to go file an antitrust lawsuit against saudi arabia. first of all, it's very questionable about whether or not you would get away with it, but what do you think their immediate response would be? they'll just cut oil further. this is not binding on them. it doesn't force them to do anything. so the concern here is a rupture with saudi relations or the fact that saudis for some reason don't feel that we are allies enough that they need to help us out at at this moment, why would you go and double down on a situation that would further alienate them and potentially, again, cause them to raise prices even further? paul: a couple of other things, dan, that the democrats have threating -- threateni

one is called nopec.would remove anti-trust immunity from foreign nations that take part in opec that passed senate committee 17-4, with both parties' support. another bill released by three democrats yesterday would remove 5,000 troops from saudi arabia and the uae and remove defense systems, too, in the wake of the decision that being said, both chambers of commerce are out of session right now. we'll see what the white house can do next. tyler? >> the jones act is central to much of this what is the jones act and is there any talk about of repealing it as a way to increase domestic oil flows? >> well, it's come up in discussions, tyler the jones act places restrictions on which ships can actually dock at certain locations around the country, that have energy products onboard. it came up in a meeting this summer with the energy industry asking the administration to repeal it. but in what i'm told was a very tense discussion, the administration asked companies exactly how much would that take off the ret

>> you don't and it is a garbage poll, there is no way they're explaining to people what nopec means.he question would you like opec to have as much power as they do? you and i would say, no, wish they wouldn't. would you say want oklahoma and texas to be more important? that is what no peck should be. is the biden administration allowing u.s. resources being leveraged instead of suing opec in a court. it is completely ridiculous. not our business to tell them what to produce. it is especially offensive when we could be the marginal producer. indeed we were the marginal producer three years ago. charles: right. >> we're choosing not to be the leader on the world stage. charles: it is absolutely nuts to me. i can't let you go without stock ideas because you have got names not in the energy patch. >> we were probably got to a price level we have like lamar advertising which is a smaller cap company but we loaf their dividend growth years and years. make digital billboard. charles: has something to do with the midterm elections with all the money being spent out there? >> no it doesn't b

they can't afford this winter and the white house is now talking about bringing back that go nowhere nopechas been around for decades would try to bring antitrust lawsuits against opec. really? really will that stop opec and russia? >> truth is there is a great transition happening but a transition from the power, strength and prosperity of united states to other countries that don't have our interest or world's interests in mind. that is exactly what the policies the biden administration continues to force on the american people. it is interesting that our supposed transition to green new energy is not being followed by the rest of the world. what we take off the world market in oil and gas they simply replace with other rogue countries, asking venezuela. i can tell you people here in texas we're right here, we're right here. whenever we need more oil we'll be happy to get to work. elizabeth: to what congressman cloud is saying, congressman gimenez, the u.s. is pumping around 11.8 million barrels a day. under trump it was 13 million barrels a day. that was more than double what twas in 20

there's a measure called nopec in washington, d.c. to try and punish them in some way.t can we do? if what can literally be done about opec, their back to get them to stop the games that only help themselves? >> yeah. remember, they're thinking about their own revenue, but they're also thinking of aligning themselves with russia. why is that? because russia's a big grain producer. they buy grain from russia, they buy armaments from russia, so it's in their political interests to align themselves with helping russia by cutting prices. on the other hand, the administration, those in congress have been talking about whether or not to begin to take antitrust action against foreign-owned, state-owned oil companies that operate around the world and in the united states. europe is talking about capping the price of oil that it's willing to purchase from russia. it would do so by denying insurance and financing for ships that russia uses to move its oil if that oil is priced above a certain level. and 90% of the world's shipping is insured by consortium in london. there's a sto

. >> leslie on the -- lastly, on the gas price string of questions come to think nopec legislation hased around for a long time, -- despite its potential downside, would be potentially effective in lowering prices or pressuring opec plus? david: we are having conversations as one would expect with nevers of congress on what additional -- with members of congress on what additional tools we could have. what we are doing internally, is weighing the pros and cons of this approach and that approach and cannot say anything more at this point beyond that. >> i figured you would say that. how do i get myself into trouble? right now, much of the conversation on energy reliability is focused on getting europe through the winter. they are going through what might be termed as a forced rapid energy transition. we are at the start of our own planned acceleration in the energy -- in the journey with ira and other legislation. how you bells need to deploy clean energy -- how do you balance the need to deploy clean energy as fast as possible and -- david: the quicker we deploy a diverse range of clea

tlo's a bill called nopec to file sanctions against countries, foreign countries that are complicit in raising oil prices. there are things we can do. but bottom line, when it came to choosing sides, opec 6 and particularly the saudi arabian kingdom decided to come down on the side of vladimir putin, not on the side of the western world or the united states. >> good morning. when the president traveled to saudi arabia over the summer, white house officials were careful to say, look, yeah, oil is going to come up but it wasn't the only topic of conversation. it was about the relationship the united states has in the middle east in particular, how it could play a role with iran. in the light of this with saudi arabia seemingly choosing sides away from the united states, beyond the issue of oil, what is your concern right now about how that could affect the u.s.' role and the president's role and relationship with the middle east going forward? >> well, taking a look at the litany of problems we've had with saudi arabia, starting with 9/11, the unanswered questions, jamal khashoggi, still

react by pushing through the nopec legislation?ling arms to saudi arabia how will we react if there's a cut? going to be a big deal and then there's the russia factor it's opec plus meeting russia is 11 million barrels a day. they are the big plus in opec plus and while i can't say for sure, the expectation is that the russian delegation will be attending in person. alexander novak, former ministry is now deputy prime minister i asked opec a short while ago, are they confirmed they said, we think they're coming we're not sure that would be a really interesting geopolitical situation given we are in europe, which i've been told by some people that there is an energy crisis right here in europe, carl so, three big things to watch. the opec meeting tomorrow. should get a big production cut. in person for the first time in 2 1/2 years. >> all this back and forth, brian, about the possibility of a price cap on energy. how is that factoring into, i guess, the chess that's being played now with this opec meeting happening? >> reporter: we

fuel exports, whether it's so-called nopec, some of the other potential policies that could make theird through congress, what is your expectation and what would the ramifications to the broader market be? >> well, it's not so easy to come up with a set of measures that put more pressure on opec whilst at the same time calming oil prices down. it doesn't contain a lot of things that the governments could arguably do. i think one of the reasons why opec has been so assertive on this occasion is they arguably have quite a lot of control over the oil markets. their market share has risen again. production levels are very high so, particularly in the core, middle eastern opec countries, so there is room for lower production, spare capacity is low. they're not overflow of low. there are not an awful lot of other countries that can step in and grow production quite sharply. so, i think they probably looked at the broader landscape of, you know, potential sort of ramifications, counter moves, and concluded at this point if they want higher prices, they can probably get it. >> martin, trying t

lawmakers, even though they are back campaigning for the midterms, they are talking about saudi arabia and nopecat for 20 years has been kicked around. no president would ever sign this, the repercussions. this would basically give the justice department the leeway to go out and sue some of these countries are part of opec. right now, even though it is potentially a idea, you have senator grassley saying he wants to put it as anime meant to the spending bill. his inbox was, my bipartisan with opec would crackdown on tactics from the foreign oil cartel. i asked -- widens top energy advisor about this, the statement from jake sullivan and brian deese. he said, i will let you read the tea bees. the administration is sending a warning shot. the mention of opec would give both officials nightmares. lisa: they are pushing back. i would love you to weigh in on this. we heard the oil price caps for russia, europe is talking about, was part of the reason for why they are wanting to cut reduction because of the extra uncertainty introduced by this. do you understand what these price caps are and how this