Posted on 05/22/2017 3:43:24 PM PDT by Lorianne
The Saudis are begging Trump to stop pumping so much oil.
Saudi Arabia made the plea earlier this month in its monthly oil report.
The report said “the collective efforts of all oil producers” would be needed to restore order to the global oil market. It added that this should be "not only for the benefit of the individual countries, but also for the general prosperity of the world economy."
It’s a bizarre request, to say the least. You’re probably even wondering why they would do such a thing.
As I'll show you in today's essay, it's a clear act of desperation. One that tells me the country is doomed beyond repair.
I’ll get to that in a minute. But first, let me tell you a few things about Saudi Arabia.
• It’s the world’s second-largest oil-producing country after the United States…
It’s also the largest producer in the Organization of the Petroleum Exporting Countries (OPEC), a cartel of 13 oil-producing countries.
Like other OPEC countries, Saudi Arabia lives and dies by oil. The commodity makes up 87% of the country’s revenues.
This was a great thing when the price of oil was high. Saudi Arabia was basically printing money.
But that hasn’t been the case for years.
You see, the price of oil peaked back in June 2014 at over $105 a barrel. It went on to plunge 75% before bottoming in February 2016. Today, it trades under $50.
(Excerpt) Read more at caseyresearch.com ...
“Those days are over. The United States now rules the global oil market, and it’s showing no mercy.”
*TRUMP EFFECT BUMP*
Good article. Could explain all the over-the-top, ‘Pomp & Circumstance’ the Saudis displayed toward President Trump earlier this week.
Sounds like a good like to all of us.
The report said “the collective efforts of all oil producers” would be needed to restore order to the global oil market.
We used to call that Collusion.
now rewritten:
The report said “the collective efforts of all CellPhone producers” would be needed to restore order to the global CellPhone market.
This above scenario would be CRIMINAL and any CEO that brought this up would be Arrested and sent to Prison.
The Sherman Act outlaws “every contract, combination, or conspiracy in restraint of trade,” and any “monopolization, attempted monopolization, or conspiracy or combination to monopolize.” Long ago, the Supreme Court decided that the Sherman Act does not prohibit every restraint of trade, only those that are unreasonable. For instance, in some sense, an agreement between two individuals to form a partnership restrains trade, but may not do so unreasonably, and thus may be lawful under the antitrust laws. On the other hand, certain acts are considered so harmful to competition that they are almost always illegal. These include plain arrangements among competing individuals or businesses to fix prices, divide markets, or rig bids. These acts are “per se” violations of the Sherman Act; in other words, no defense or justification is allowed.
https://www.ftc.gov/tips-advice/competition-guidance/guide-antitrust-laws/antitrust-laws
Remember back in the 70’s when saudi Arabia sent us plentiful, cheap oil?
Let America PEC put SA down; permanently...
That donkey left the barn decades ago.
Allow cartels, by any countries, for any reason, and market forces cease to exist.
Not really—But I do remember the Saudis squeezing our b@lls on a regular basis back then.
9/11 = Saudi Arabia.
Why is it that while the price of oil has dropped, Venezuela and Saudi Arabia seem to have have wildly different consequences of that happening.
10 Most invasive parasites of the world
https://www.bing.com/videos/search?q=parasite&&view=detail&mid=2046D1116E9384652A6B2046D1116E9384652A6B&FORM=VRDGAR
$5/bbl for Lite berri crude
I remember 27 cents/gal gas.
A recent article I saw indicated that US shale oil producers can now “break even” with $34/barrel oil.
“We used to call that Collusion”.
And yet it’s the very foundation of our healthcare system.
That explains everything.
The world, The West in particular, desperately needs for the wealthy Moslem countries to be impoverished. Jihad subsides when and only when there are not the excess resources necessary to pay for it and when raiding one’s neighbors isn’t possible any more. Moslem societies need for survival only enough for the 99+% to live at basic subsistence level and the tiny ruling class to live in splendor. Anything over that goes to jihad.
They suffer the same consequences but differing levels. Saudi Arabia still relies on western managers to run its oil industry and does not micromanage it. It sets output and allows the managers to reach and sustain those levels. Venezuela micromanages its oil and micromanagement entails macro thievery and corruption. The value disappears before the government as government even gets its hands on it. Arabia is suffering but has vast reserves of money it saved which it is running through pretty rapidly as the spending it has committed itself to is not sustained by the income from the decreased price of oil. It will hit the wall at some point. If it does the rational thing and cuts spending it will then face a Wahhabi explosion the Sauds will not survive. They have to either get the price up or they have to somehow eliminate the Wahhabis. The second will be no easier a thing to do than the first. The Wahhabis actually share the rule of the Kingdom and are the religions police and the morals enforcing forces in the country. Many of the Sauds themselves are Wahhabis and the civil war that would follow a real effort to reduce spending which would reduce jihadism in the world would be the end of the Sauds and the initiation of some sort of Jihad State.
Exactly. Excellent points.
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