The Royal Family need the money
Looks like the Saudis blinked. Or it could be bad info to try and jack prices up.
OK let’s all jump off the roof on 3...
I dont see any cut in production any time soon. Too many players that need too much money.
I just hope Barry doesn’t get any ideas about controllinv US production.
And the stock market has taken off like a scalded cat.
Just so long as nobody else says anything until after 4....
Saudi’s need about $80/barrel oil to make their budget work. They have considerable reserves but they’re burning through them very quickly.
With their considerable social welfare programs put in place over the recent past to keep the radicals and masses sedated and their war in Yemen there is tremendous pressure being put on their budget. This can be seen with their recent announcement of considering to take Aramco public. Probably the largest corporation in the world. They need cash.
Breaking Russia’s clampdown on the Sunni terror groups and their backing of Assad and Iran isn’t working out so well. Not to mention the benefit of breaking shale production in the US, which may work but will come back on line with different owners at some point.
They have way too many fixed costs for such an ambitious undertaking to work.
OPEC States Say No Meeting Planned as Russia Floats Talks
http://www.bloomberg.com/news/articles/2016-01-28/opec-delegates-say-no-plan-for-meeting-after-russia-floats-talks
January 28, 2016 — 11:29 PM CST
OPEC delegates said they have no meeting planned with Russia after the country’s Energy Minister Alexander Novak indicated he was willing to meet with the group next month to coordinate oil-output policy.
Four OPEC representatives said they hadn’t heard of any plan for talks. One Gulf member said de facto leader Saudi Arabia had no proposal to trim production by 5 percent, after Interfax reported the country had suggested such a cut at previous OPEC meetings, citing Novak. The minister said Russia would be willing to discuss output with OPEC, according to the news service.
“It’s possible that Russia could be testing the waters to gauge how OPEC members would respond to the idea of cuts,” said Jason Bordoff, director of the Center on Global Energy Policy at Columbia University and a former senior oil official at the White House.