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Oil dive deepens to 12-year low; $20 warning on China
Yahoo.com ^

Posted on 01/12/2016 8:12:07 PM PST by TigerClaws

Related Stories

Oil dive deepens to 12-year low; $20 warning on China Reuters Oil prices fall for sixth day as hopes for recovery fade Reuters Oil down again to 12-year low; $30 handle looks more likely Reuters Oil slumps towards 11-year low, ignoring Mideast tensions Reuters Oil ends 2015 down 35 percent; long, painful hangover seen Reuters

NEW YORK (Reuters) - A brutal new year selloff in oil markets quickened on Monday, with prices plunging 6 percent to new 12-year lows as further ructions in the Chinese stock market threatened to knock crude as low as $20 a barrel.

Amid an accelerating tailspin that shows no sign of slowing, Monday's dive - the biggest one-day loss since September - triggered a rash of panicky trading across the market.

(Excerpt) Read more at finance.yahoo.com ...


TOPICS: Business/Economy; Foreign Affairs; News/Current Events; Politics/Elections
KEYWORDS: chinastockmarket; energy; methane; nuclear; oilprice; opec; petroleum; prepare; shelter; stockmarket; war
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To: Vince Ferrer

Exactly


21 posted on 01/12/2016 9:07:18 PM PST by Maine Mariner
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To: r_barton
You are right, the price will go back up.

But it will go back up after most of the domestic producers are bankrupt. The Saudi’s and their proxy's will simply buy our domestic producers.

The price will spike like 74 except this time there will be very few domestic producers.

22 posted on 01/12/2016 9:14:47 PM PST by montanajoe
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To: Cowboy Bob

So then the bottom line is who can survive the hurtin’ the longest? The House of Saud - who are rolling in gold bullion ... Or the American venture capitalists - who now, leveraged to the hilt, all have their manhood squarely on the chopping block with worthless fiat debt?


23 posted on 01/12/2016 9:18:00 PM PST by WTFOVR (I find myself exclaiming that expression quite often these days!)
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To: r_barton
How soon until they pay us to get a fill up? ;-)

In California we still have to look to find a price under $3.00 a gallon.

24 posted on 01/12/2016 9:20:11 PM PST by gunsequalfreedom (Conservative is not a label of convenience. It is a guide to your actions.)
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To: TigerClaws
Spoke with a man yesterday. His company laid off 120 people. This will also make the Saudis vulnerable to collapse economically - and collapse that kingdom.

Unlikely. The al Sauds are pious enough. The revolts in Iran (1979), Egypt, Libya and Syria occurred because the rulers were irreligious. It's a global phenomenon in majority Muslim countries. The rulers are expected to be holier than Muhammad. That is why so many are edging towards imposing shariah law. Not because the rulers want to, but because if they don't, somebody else will, over their dead bodies.

25 posted on 01/12/2016 9:41:44 PM PST by Zhang Fei (Let us pray that peace be now restored to the world and that God will preserve it always.)
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To: TigerClaws

this story is made up.
..........

KSA is at war with Iran, and their friend Russia.
KSA will pump as hard and as long as, *Russian money* holds out.

... *any estimates* on how long that is?


26 posted on 01/12/2016 9:43:01 PM PST by RockyTx
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To: RockyTx

Saudi Arabia Will Be Broke In 5 Years, IMF Predicts

As crazy as it sounds, the Saudis are going broke.

Of course you wouldn’t know it if you read the account of King Salman’s latest visit to Washington which included booking the entire DC Four Seasons and procuring a veritable fleet of Mercedes S-Class sedans.

http://www.zerohedge.com/news/2015-10-21/saudi-arabia-will-be-broke-5-years-imf-predicts

This is made up? I’m curious. Saudis with no money means the Kingdom collapses.


27 posted on 01/12/2016 9:45:16 PM PST by TigerClaws
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To: montanajoe
But it will go back up after most of the domestic producers are bankrupt. The Saudi’s and their proxy's will simply buy our domestic producers.

It's not a workable plan. The Saudis would have to make hundred of billions of dollars in payroll expenses and oil and gas royalties. Or Harold Hamm and his ilk will simply get a bunch of investment bankers together to finance his next venture, hire the laid-off workers, lease idled exploration equipment and sign new oil and gas leases at previously shuttered fields.

28 posted on 01/12/2016 9:49:35 PM PST by Zhang Fei (Let us pray that peace be now restored to the world and that God will preserve it always.)
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To: TigerClaws
I’m curious. Saudis with no money means the Kingdom collapses.

Why? Plenty of poor Muslim countries where the rulers are sitting pretty. Yemen is a fight between Sunnis and Shiites. Algeria, Iran (1979), Syria, Libya and Egypt all went through ructions because the leaders were secular.

29 posted on 01/12/2016 9:53:07 PM PST by Zhang Fei (Let us pray that peace be now restored to the world and that God will preserve it always.)
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To: TigerClaws
Saudis with no money means the Kingdom collapses.

Besides, IMF projections assumed no Saudi spending cuts. They have cut spending, and will continue to cut spending. Heck, Saddam cut spending to the bone after he was evicted from Kuwait, but managed to stay in power until he was toppled by US troops in 2003. Given how the Baath Party has morphed into ISIS and given the Iraqi government a run for its money despite being run on a shoestring relative to the present Iraqi government, it's likely Saddam would have died in office if Bush hadn't turfed him. This is despite the fact that Iraq's GDP per capita was roughly the same as Egypt's ($1300 per year) when the US invaded, and Saddam had to rely the 20% of the population that was Sunni Arab to hold down the 80% of the population that was Shiite or Kurdish.

30 posted on 01/12/2016 10:03:55 PM PST by Zhang Fei (Let us pray that peace be now restored to the world and that God will preserve it always.)
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To: TigerClaws

“This will also make the Saudis vulnerable to collapse economically - and collapse that kingdom. “

It’s also really bad news for both Russia and Venezuela. Actually, there are numerous countries that depend on oil revenue, that have “pulled a USA” and spent beyond their means who have no alternative and may go under too. It would tickle me to no end to see the whole ME go bust!


31 posted on 01/12/2016 10:05:45 PM PST by vette6387
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To: Vince Ferrer

“Venezuela has already folded. The socialists thought they could pump oil and buy 51% of the vote forever. When the price dropped, they couldn’t afford the social spending anymore. Voters voted them out.”

Well, Maduro is still there! When will then send him packing? CAN they send him packing?


32 posted on 01/12/2016 10:07:20 PM PST by vette6387
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To: gunsequalfreedom

“In California we still have to look to find a price under $3.00 a gallon. “

Where in the hell do you live in California? I live in the Bay Area. Just filled up at Costco in Vallejo, $2.31 for Regular, 92 Octane was $2.51! Regular grade has been as low as $2.02.


33 posted on 01/12/2016 10:20:43 PM PST by vette6387
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To: WTFOVR

In short...Yes.


34 posted on 01/12/2016 10:27:16 PM PST by Cowboy Bob (With Trump & Cruz, America can't lose!)
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To: blam

When stripper wells are stripped away, oil may rise
http://freerepublic.com/focus/news/3382846/posts

Sell everything! 2016 will be a ‘cataclysmic year,’ warns RBS
http://freerepublic.com/focus/news/3382975/posts


35 posted on 01/12/2016 10:30:04 PM PST by SunkenCiv (Here's to the day the forensics people scrape what's left of Putin off the ceiling of his limo.)
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To: Zhang Fei
"Given how the Baath Party has morphed into ISIS and given the Iraqi government a run for its money...

That's not the sort of development I've assumed; I've always understood the Baath party is or was nationalist and leftist in character. It surprises me to hear they've all converted converted to Islamism.

...despite being run on a shoestring relative to the present Iraqi government...

I'm a little curious about this too; Isis seized the wells, along with territory, weaponry, food and slaves. All that this has cost them is human life--at least half the lives are the other side's. Neither is of any concern them. They're running their economy free of overhead or obligation. If the price goes lower, they just pump more. If they run out material, weapons or food they just they just take it. Whose to stop them?

Well that's my understanding and I'm by no means an expert.

I'm not so sure this is entirely the work of the Saudis. With an election so close, dems desperate to stay in power, international finance's plans for a carbon market, obama's hatred of energy development, and concerns about rampant real inflation, lower energy prices must seem an attractive temporary tactic. I wouldn't be surprised to find Soros involved. The minute they've neutered domestic production and won the election, prices will skyrocket.

36 posted on 01/12/2016 10:50:38 PM PST by tsomer
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To: vette6387

Happening in Alaska right now. The government doesn’t have the guts to make the cuts yet.


37 posted on 01/12/2016 11:36:50 PM PST by vpintheak (Death before disarmament!)
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To: Maine Mariner

Venezuela seems to be making money in other ways.

American Airlines writes off $592 mln trapped in Venezuela
http://finance.yahoo.com/news/american-airlines-writes-off-592-134747157.html


38 posted on 01/13/2016 12:00:07 AM PST by r_barton
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To: TigerClaws; Cowboy Bob; Dallas59; Maine Mariner; stuck_in_new_orleans; Vince Ferrer; ...
Old article but still very relevant. Here's what the sponsored propaganda didn't tell you. Surprise. Have fun. Enjoy the slide and international festivities.

Putin Plays Down Russia's Deadly Dependence on Oil & Gas Revenues
OilPrice.com
By Al Fin
30 October 2012

Russia's federal budget is reliant on commodities revenues - according to official data, commodities contribute around 60 percent of the federal budget; in reality, that number is closer to 75--80 percent as much of the service sector depends on money from oil and gas. _Russia's Oil Luck or Curse

So, Putin claims a 50% dependency. Official data puts the number closer to 60%. And "in reality," the number may be as high as 80%. Or perhaps even more.


And as for the propaganda about the collapse of China every week since the end of 2004, Captain Cook ('ave a look).

Automotive industry in China
Wikipedia
While most of the cars manufactured in China are sold within China, exports reached 814,300 units in 2011.[4]...In 2010, both sales and production topped 18 million units, with 13.76 million passenger cars delivered, in each case the largest by any nation in history.[8] In 2014, total vehicles production in China reached 23.720 million, accounting for 26% of global automotive production.[9]


More than a little consumer demand and decoupling happening there.


39 posted on 01/13/2016 12:19:48 AM PST by familyop ("Welcome to Costco. I love you." --Costco greeter in "Idiocracy," example of today's politico.)
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To: TigerClaws; Cowboy Bob; Dallas59; Maine Mariner; stuck_in_new_orleans; Vince Ferrer; ...

And as for the propaganda about the collapse of China every week since the end of 2004,...that was a typo. I meant to write since the end of 2007.


40 posted on 01/13/2016 12:24:35 AM PST by familyop ("Welcome to Costco. I love you." --Costco greeter in "Idiocracy," example of today's politico.)
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