Saudis Plan Big Oil Output Hike, Beginning All-Out Price War

[thesolar65]

Good news.

 

[Arulmozhi Varman]

This will have repurcussions far beyond Russia and will have impact even in US and Canada where environmentalists have held govt hostage on various issues. Shale oil was started on the premise oil prices will stay high and it needs atleast 40$ per barrel to sustain itself. But if it goes less beyond that, shale oil consumers will get low, job losses, consumption will be hit and so exports from various developing countries. US is almost the biggest export market for many developing countries. This could lead to slow global recovery adding to coronavirus thing.

Salman is playing an dangerous ego game. If it even continues for more than 4-5 months it can be interesting. While developing countries save forex, it's benefits are questionable.

This also means no new oil or gas fields will now be invested in any other countries.

 

[HannibalBarca]

They have no clue what they are doing; they will cripple their own economy in doing so. Aramco going public means they are accountable for profits/losses; if there is no sustained growth or net income, forget it - their own value will collapse. It seems this was a pyramid scheme at play.

This isn't a war against themselves, opec or Russia... It's a war against US shale industry... That RU and KSA wish to eradicate... Cutting Barrels production and price rise was only beneficial in the long term to the US oil Industry...that years after years were eating market share... Even the Orange Baboun in his retardness celebrated such move with "US doesn't any the ME... We are the first Oil producer"...

"Sacrifice is needed to survive..."
But KSA/RU have to maintain such "prices" for at least few weeks... to make enough damage in the US, and retain their "Monopoly"...

Now, can we say it's only bc of that... Ofc not... The Pandemic played a crucial role in making it "happen". like getting that little tap in your back when you are getting ready to jump...

In the End, OPEC/RU economies will be impacted... But better bleed now... than dropping dead soon ...

What we do not know... is the global repercussion of many of those "events"... We could fall into an unstoppable spirale... that "Little political gains" will have no meaning anymore...

 

[denel]

This isn't a war against themselves, opec or Russia... It's a war against US shale industry... That RU and KSA wish to eradicate... Cutting Barrels production and price rise was only beneficial in the long term to the US oil Industry...that years after years were eating market share... Even the Orange Baboun in his retardness celebrated such move with "US doesn't any the ME... We are the first Oil producer"...

"Sacrifice is needed to survive..."
But KSA/RU have to maintain such "prices" for at least few weeks... to make enough damage in the US, and retain their "Monopoly"...

Now, can we say it's only bc of that... Ofc not... The Pandemic played a crucial role in making it "happen". like getting that little tap in your back when you are getting ready to jump...

In the End, OPEC/RU economies will be impacted... But better bleed now... than dropping dead soon ...

What we do not know... is the global repercussion of many of those "events"... We could fall into an unstoppable spirale... that "Little political gains" will have no meaning anymore...

Unfortunately, Clown salman tried it already for 3 years; it has lead no where.

 

[HannibalBarca]

Unfortunately, Clown salman tried it already for 3 years; it has lead no where.

Because he was alone in it... and the "Global Environment" was ready for it...
Today, it's different... Conditions are "good" enough to make it happen... but as I said... We may see more " External" events popping from different regions... that will add to the mix... and it could be dangerous to the world as we know it...

 

[FuturePAF]

That is indeed what Pakistan should be doing taking advantage of low oil prices and building a reserve for at least next six months to one year.

Pakistan doesn’t have the spare cash to even pay its normal bills, much less buy up oil for a strategic reserve. I too agree that if they had the cash, they should be buying up enough for 6-12 months worth, but we all know with that kind of oil sitting around the next government could sell it cheap to its friends and the friends would sell it at a high price. The nations would not benefit. Only the military should be buying enough for a strategic reserve, to be better prepared for a 30-40 day war.