Countries that suffer when the oil price plummets

[raptor22]

As per the reports they are selling the oil on something around 50 $pb price, considering the points of delivery and the risk factors due to lack of the insurance factors, they are costing for the buyers something around 75 to 85 based on the available reports.
I think the income sources of the ISIL would be the most impacted here.

Whatever the reason and target is whether Iran and Russia or ISIL , the current production is more than oil consumption and logically fall in prices would stimulate demand sth that is not happening ...producers tend to increase their production to receive the same revenue which could decrease prices more ...
Reversing and controlling oil prices to previous ones is much more harder than decreasing it for political aims.

 

[Abii]

Well, the rumors that i have heard is the same. It's about USA talking with KSA to make oil prices lower. Russian oil wells, have high costs to produce oil unlike cheap extracted ME oil.It would hurt Russia the most, who I believe is the main target. dropping oil prices was what happened during Iran-Iraq war as well, which had a huge negative impact on Soviet Union. Anyway, I doubt oil prices go below 70$ since it causes oil shale production and some Russian oil wells to stop working.

PS. I did not receive alerts for your mentioning. I don't know what's wrong with it.

I wouldn't buy into the rumors man. Supply is up and demand is slowing. All major European economies revised down their growth for the foreseeable future. That really hurt oil prices.

And it won't even go below 75 dollars. Under that amount drilling will become uneconomical, at least in Canada. The North American oil lobbies are now really strong, even Canadian ones. They'll be working over time to get prices back up any way they can.

 

[rmi5]

So you are not going for the ISIS being the major target here, too. Then what is your answer to the question about the time of the project. Why the start of the cold season. You know Russia usually reduces it's oil export in the coming seasons due to the domestic need. I think the start of the project in these seasons and time period just means one thing, that it's all being a coordinate move.

Yes, I do not buy the theory of ISIS being the target. ISIS has even sold oil with 12$ per barrel in a couple of months ago! and also has some constant cash flow of its supporters from GCC rich arabs. Basically they do not lack money in any scenario. Also, oil price is much more important to be changed just because of bunch of ragtag ISIS militias.
Russia has turned too much aggressive and pressuring them about gas exports, is not easy. The easiest tool to put pressure on them is oil

I wouldn't buy into the rumors man. Supply is up and demand is slowing. All major European economies revised down their growth for the foreseeable future. That really hurt oil prices.

Yes, but, overall, the world economy is experiencing growth after the recession and oil demands would increase as well. The current decrease in oil price, is more about the increasing of oil productions by suppliers, specially KSA and USA.

And it won't even go below 75 dollars. Under that amount drilling will become uneconomical, at least in Canada. The North American oil lobbies are now really strong, even Canadian ones. They'll be working over time to get prices back up any way they can.

I agree. 70-75$ is the minimum possible price.

 

[New]

Yes, I do not buy the theory of ISIS being the target.

Then stands no other choice but the middle eastern way of negotiating,

So I guess we have to wait and see what will come.

 

[New]

I wouldn't buy into the rumors man. Supply is up and demand is slowing. All major European economies revised down their growth for the foreseeable future. That really hurt oil prices.
And it won't even go below 75 dollars. Under that amount drilling will become uneconomical, at least in Canada. The North American oil lobbies are now really strong, even Canadian ones. They'll be working over time to get prices back up any way they can.

Hey welcome back dude, I think you are one the guys with hands towards the skies praying for the prices not to fall too far, I guess, as your personal interests are at risk right now, ya?
If that's the point, then our prayers are at a very severe collision, in this moment, as I have been praying nonstop during previous years for the oil prices to be back on 6-7 $ area.

 

[Abii]

Hey welcome back dude, I think you are one the guys with hands towards the skies praying for the prices not to fall too far, I guess, as your personal interests are at risk right now, ya?
If that's the point, then our prayers are at a very severe collision, in this moment, as I have been praying nonstop during previous years for the oil prices to be back on 6-7 $ area.

haha yeah. But thankfully things won't fall off the cliff any time soon (below 70-75 dollars). That's where things get really dicey for us oil workers. Basically we need things to stay relatively the same till 2020 and a little after. By then all the refineries and pipelines will be ready. Right now construction is still in full swing and every time oil dips, investors start pulling back. Once the capital is is in place, price swings will matter much less as production will go on regardless.

Another problem in Canada is that USA is our only customer. The federal government is building two pipelines from Alberta (one of them isn't confirmed yet), towards either coast (one to the Pacific ocean and one to the Atlantic ocean). The one that goes to the Pacific is called the Northern Gateway Pipeline and it's for the Chinese market. They're going to send the oil all the way through the Rocky Mountains towards the Pacific. There it will get refined in a 20 billion dollar refinery and loaded on to ships destined for China. The one that goes to the Atlantic has Europe and India in mind. There is a third pipeline destined for Texas, but Obama hasn't approved it yet.

Basically by 2020 Canada will most likely become a bigger oil producer than Iran!! The most interesting part of it is that Canada's oil is all in the form of "tar sands." You have to mine the sand, extract the oil out of it with huge cost and refine it a million times. All that in one of the harshest environments on the planet (Northern Canada). It's been a marvelous achievement. Now in the Middle East the oil is literally sitting right there in a pool. All there needs to be done is to lower a straw and suck it all up. There, done. But alas, the stupidity and backwardness of the Middle Eastern mind knows no bounds. Sixth century thinking is the enemy of progress.

 

[New]

haha yeah. But thankfully things won't fall off the cliff any time soon (below 70-75 dollars). That's where things get really dicey for us oil workers. Basically we need things to stay relatively the same till 2020 and a little after. By then all the refineries and pipelines will be ready. Right now construction is still in full swing and every time oil dips, investors start pulling back. Once the capital is is in place, price swings will matter much less as production will go on regardless.
Another problem in Canada is that USA is our only customer. The federal government is building two pipelines from Alberta (one of them isn't confirmed yet), towards either coast (one to the Pacific ocean and one to the Atlantic ocean). The one that goes to the Pacific is called the Northern Gateway Pipeline and it's for the Chinese market. They're going to send the oil all the way through the Rocky Mountains towards the Pacific. There it will get refined in a 20 billion dollar refinery and loaded on to ships destined for China. The one that goes to the Atlantic has Europe and India in mind. There is a third pipeline destined for Texas, but Obama hasn't approved it yet.
Basically by 2020 Canada will most likely become a bigger oil producer than Iran!! The most interesting part of it is that Canada's oil is all in the form of "tar sands." You have to mine the sand, extract the oil out of it with huge cost and refine it a million times. All that in one of the harshest environments on the planet (Northern Canada). It's been a marvelous achievement. Now in the Middle East the oil is literally sitting right there in a pool. All there needs to be done is to lower a straw and suck it all up. There, done. But alas, the stupidity and backwardness of the Middle Eastern mind knows no bounds. Sixth century thinking is the enemy of progress.

Interesting Info, thanks dude for sharing.

 

[Ceylal]

@Ceylal

Upper land?

Yes and you should consider that KSA and the GCC are practically one county and we control 50% of the WORLD'S oil and gas production and reserves. Let alone having a large number of shale gas too.

UAE alone has almost as big an economy as 80 million big Iran. It's a joke when Iranians discuss economy.

The GDP per capita of Qatar is the highest in the world and other GCC states are among the richest societies out there despite having many retarded rules that hinder economic growth.

The GDP per capita of KSA is higher than the EU average. That will never be a reality in Iran.

GCC alone is richer than Iran will ever be. Let alone the entire Arab world.

It's your country whose economy is in shatters and your currency that is less valuable than toilet paper.

It's not us that have a problem.

This oil policy also hits you hard. Not us.

An interesting thing is that both China and Saudi (along with the GCC) are the main "trade surplus" nations in the world, and also amongst the world's largest creditor nations.

China is our biggest trade partner too.

You don't stand a chance so quite it.

We (GCC) basically own TRILLIONS of dollars in investments abroad. You owe 0 in comparison and those that you owned or the few that you owe have been confisticated or can be any second.

Your fake wannabe Arab Mullah's will rule your country as well for your entire life. So enjoy.

Maybe you can be lucky and join the Farsi migrant community in the UAE. Those that enrich the UAE economy. After all better than staying in Iran.

The GDP (nominal) of the GCC is almost 2 billion as of 2014 while the GDP per capita is around 35.000 US dollars. Iran is not even CLOSE to those numbers. Let alone natural riches. Investments abroad etc. Our GDP is 3-4 times bigger and our GDP per capita is 6-7 times bigger!

@BLACKEAGLE @JUBA @Full Moon @Mosamania @Bubblegum Crisis @Altamimi @Ahmed Jo @ebray @Halimi @Rakan.SA @fahd tamimi @Yzd Khalifa @burning_phoneix @Awadd @Arabi etc.

Also all of Iran's oil and gas fields are located just across the Gulf in the Arab inhabited areas of Iran. It's not found in Qom, Tabriz, Tehran or Mashhad near Turkmenistan…..

"Upper hand" my ***.

You can't take a camel to a spring and make him drink....You are KSA's idiot of the week. What I wrote above went over your head....
In fact all the number of craft , boat, soldiers , including the useful part of Saudi Arabia turned into waste land with two, only two of their scud derived iran missile...I am talking about two..two missiles only...I am sure the commanders of the sang and the regular Saudi Army grasp that.

 

[al-Hasani]

You can't take a camel to a spring and make him drink....You are KSA's idiot of the week. What I wrote above went over your head....
In fact all the number of craft , boat, soldiers , including the useful part of Saudi Arabia turned into waste land with two, only two of their scud derived iran missile...I am talking about two..two missiles only...I am sure the commanders of the sang and the regular Saudi Army grasp that.

Continue acting like the stateless Berbarian that you are. Iran is like a dog. It seldom bites. Only talk. Iran already tasted Arab wrath several times throughout its history and will continue to do so.

I suggest that you take your donkey (camels are great animals and very useful animals - you should know since you inhabit the Sahara and have more of them than us) and stop writing nonsense in every single thread.

P.S: Personally I still prefer our world famous Arabian horses. Those horses that tamed and enslaved stateless Berbarian vandals such as you. You wanted war with us Arab members here be they Iraqis, KSA, Egyptians etc. and now you have it. Instigated by you and continued by you even despite offers of peace. But you will never learn. Despite being a grown up man. No wonder that your village sent you to the US. They were tired of seeing your *** too.