$1 Oil: Saudi Arabia's Attempt To Crush U.S. Shale

Oilprice ^ | Tom Kool

[Yo-Yo]

Shale isn't profitible at $20/bbl.

At these prices, it's better to use up Saudi Arabia's oil and keep our Shale in reserve. We know where the Shale is and it isn't going anywhere.

[dfwgator]

Always Look on The Bright Side of Life
https://www.youtube.com/watch?v=JrdEMERq8MA

[BunnySlippers]

bookmark

[glorgau]

Hmm, I wonder what the Saudi burn rate is on their cash in hand? Any market holdings they have took a hit lately, and they’ve got a restive population that is used to getting lots of subsidies. They can probably burn off a $300-$400 billion before things get really tight.

[gathersnomoss]

We need a new version of a Beatles hit....
Glass Donut.

[ConservativeInPA]

Saudi isn't the only bad actor in this. I was watching CNBC this afternoon and they showed satellite imagery of multiple oil tankers sitting off the coast of Syria. The tankers had turned off their transponders until they arrived at the Suez Canal, where they need to be turned on. Then they turned the transponders off after exiting the canal. I guess the Egyptians don't really care about the actual origin and destinations of ships traveling through the canal. Oh, need I forget the punch line, the origin of the tankers was Iran.

Today's quiz is: What do the majority of people in Saudi Arabia, Iran, Egypt and Syria have in common?

[gwjack]

Interesting article, this is. My money is on the longtime accuracy of Peter Schork. He said on Fox Business yesterday that he saw (in no specific time range) that ta crude would go to $9 or less. He is usually correct, and ahead of the curve. http://www.schorkreport.com/

Gwjack

[Pearls Before Swine]

The Saudis are our allies!

/S

[LibertyWoman]

ummm that clip could cause someone to hang themselves

[gwjack]

https://finance.yahoo.com/news/oils-record-coronavirus-slide-nowhere-184538084.html

[Meatspace]

“At these prices, it’s better to use up Saudi Arabia’s oil and keep our Shale in reserve. We know where the Shale is and it isn’t going anywhere.”

Good to know someone that understands markets.

[Redcitizen]

And I thought 1.31 was a good price.

[ameribbean expat]

Ultimately counterproductive . Shale producers going into bankruptcy just means that those assets will transfer from weaker financial hands into stronger financial hands. And when the period of consolidation is over — the cure for low commodity prices is lower commodity prices— Saudi Arabia still has the same problem they started out with.

[Paladin2]

https://marketrealist.com/2019/09/refining-crack-spread-overview-you-ever-wanted-know/

[Redcitizen]

I may have to go camping on the weekend just to get out of the house.

[Gay State Conservative]

Can wells in Texas...the Dakotas...Alaska,etc be shut down (due to low demand,for example) and then brought back online when prices go up? I think I've read that once a well in the US is shut down it can't be brought back.

[Paladin2]

“Small oil companies in America are Tremendously leveraged more and more by practically junk bonds.”

The radio ads seeking oil investors has stopped. Maybe they don’t even have enough ca$h flow to advertise

[JungleGoat77]

Notice that Ferguson of Saudi-funded J-IDEA group within Imperial College gave us the models that were probably 25x the realistic death rate, easy way to tank US economy and stop shale conversion to oil. https://www.imperial.ac.uk/jameel-institute/

[Hostage]

I guess all those farmers and ranchers pumping oil in N Dakota were putting one over me. Gee, all that time I thought these were honest folks.

[Hostage]

Not so expensive anymore. The casings are already there.