Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Only $60 Oil Can Save The Aramco IPO
Oil Price ^ | 29 June 2017 | Zainab Calcuttawala

Posted on 07/01/2017 7:20:28 AM PDT by Lorianne

The OPEC deal is in crisis. All oil price gains derived from the 1.2 million-barrel cut’s initial announcement and implementation have been wiped out, and No. 1 OPEC producer Saudi Arabia’s attempt to draw down American inventories has fallen flat, due in part to insubordination from the No. 2 producer, Iraq, along with upticks in production from Nigeria, Libya, and U.S. shale.

The KSA had a clear opportunity to drastically change the direction of oil prices last month, when the Organization of Petroleum Exporting Countries (OPEC) met in Vienna to discuss the duration and scope of the output cut extension. Though Riyadh agreed to continue the deal three months longer than analysts expected (the new deal ends in March 2018, as opposed to December 2017 as many expected), the bloc leader did not heed recommendations to deepen the cuts, keeping production at 32.5 million bpd.

In addition, Nigeria and Libya got a pass that allows them to produce as much as they can for the next nine months, despite the African duo’s booming recovery worth hundreds of thousands of barrels.

In April and May, Saudi Arabia cut exports despite the fact that the OPEC deal does not limit export volumes. But new ClipperData says that June numbers could reveal a reversal in that downward trend, as KSA appears ready to ship more oil.

The royal family – especially newly crowned heir to the throne Mohammed bin Salman – needs oil prices near $60 for Saudi Aramco’s 2018 IPO to generate the income it needs. At the time of this article’s writing, Brent was trading up at $47.78.

(Excerpt) Read more at oilprice.com ...


TOPICS: Business/Economy; Foreign Affairs
KEYWORDS: energy

1 posted on 07/01/2017 7:20:28 AM PDT by Lorianne
[ Post Reply | Private Reply | View Replies]

To: Lorianne

Shale has neutered OPEC.


2 posted on 07/01/2017 7:24:01 AM PDT by headstamp 2 (Ignorance is reparable, stupid is forever)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Lorianne

With Hillary as president, I think there would have been some “unfortunate” global crises and some “necessary” environmental regulations regarding Shale Oil and I suspect that oil would have reached the desired level of $60.

So sad that President Trump is in charge. We’re only two-thirds of the way toward making the Saudis happy. I’m weeping.


3 posted on 07/01/2017 7:28:01 AM PDT by ClearCase_guy (Islam: You have to just love a "religion" based on rape and sex slavery.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Lorianne

And just how are they going to finance terrorist if they gots no money? I mean the little savages might turn on them


4 posted on 07/01/2017 7:35:38 AM PDT by Keyhopper (Indians had bad immigration laws)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Lorianne

Saudi America is kicking the shiite out of Saudi Arabia. Winning! Trump doesn’t have to get in a shooting war with China Russia (you remember them right?) and the Muslim countries; he just has to unleash the oil companies and drive oil down to $30 a barrel. That will flatten them.


5 posted on 07/01/2017 7:37:45 AM PDT by jmaroneps37 (Conservatism is truth. Liberalism is lies.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Lorianne

Saudi America is kicking the shiite out of Saudi Arabia. Winning! Trump doesn’t have to get in a shooting war with China Russia (you remember them right?) and the Muslim countries; he just has to unleash the oil companies and drive oil down to $30 a barrel. That will flatten them.


6 posted on 07/01/2017 7:37:45 AM PDT by jmaroneps37 (Conservatism is truth. Liberalism is lies.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Lorianne

Upon issue, foreign held shares should be sized and the purchasers charged with theft by receiving stolen property, with the funds turned over to the American taxpayers who took the hit when the Saudis effectively seized the company from its US based owners.


7 posted on 07/01/2017 7:48:44 AM PDT by PAR35
[ Post Reply | Private Reply | To 1 | View Replies]

To: jmaroneps37

$30/bbl will destroy American oil companies and put thousands of people out of work. Is that what you really want?


8 posted on 07/01/2017 7:52:00 AM PDT by SVTCobra03 (You can never have enough friends, horsepower or ammunition.)
[ Post Reply | Private Reply | To 5 | View Replies]

To: headstamp 2

Shale has neutered OPEC. ....

Part of the wound was self inflicted.


9 posted on 07/01/2017 8:17:13 AM PDT by mountainlion (Live well for those that did not make it back.)
[ Post Reply | Private Reply | To 2 | View Replies]

To: SVTCobra03

“...put thousands of people out of work.”

Isn’t that what the clean energy folks want anyway??


10 posted on 07/01/2017 8:20:49 AM PDT by cameraeye (A happy khafir!)
[ Post Reply | Private Reply | To 8 | View Replies]

To: Lorianne
Dear Saudi Bush Friends,


Remember that one time when...

?

So...



...and the PetroJackwagon you rode in on.

Warmest Regards,
=HLPhat

{clapping}

11 posted on 07/01/2017 8:49:33 AM PDT by HLPhat (It takes a Republic TO SECURE THESE RIGHTS - not a populist Tyranny of the Majority)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Lorianne

OPEC cannot any longer substantially affect the price of oil. At $50 a barrel it is profitable for American producers to produce all the oil that is necessary to keep the price of oil at about that price. The movement of the oil price over the last year illustrates that. If Russia and OPEC were to stop selling oil the price would only briefly rise above $50 then would settle back to that level and then (in constant dollars) would gradually and consistently decline as American and other Western producers become more efficient and extractable reserves continues to increase.


12 posted on 07/01/2017 10:18:31 AM PDT by arthurus
[ Post Reply | Private Reply | To 1 | View Replies]

To: Keyhopper
And that is the whole thing. Islam is in expansion mode and Jihad All the Time so long as outside sources provide the resources necessary. When the Infidels quit pouring resources into Moslem countries-into Jihad- and shut off Moslems from Hijrah and Raiding the Saracens will subside into torpor and the world will not be troubled by them so long as the resources for Jihad do not flow to them.

All wealth in Islamdom beyond sufficient to support a teensy ruling class in splendour and the rest in bare subsistence goes to hijrah and jihad. It has been thus for fourteen centuries. There is no chance that it will change now or in the future.

13 posted on 07/01/2017 10:24:02 AM PDT by arthurus
[ Post Reply | Private Reply | To 4 | View Replies]

To: Lorianne

14 posted on 07/01/2017 10:29:03 AM PDT by fella ("As it was before Noah so shall it be again,")
[ Post Reply | Private Reply | To 1 | View Replies]

To: SVTCobra03

So the free market be damned. We must keep prices artificially high? Have you considered the greater good to the entire country if we can subdue our enemies using our economic power rather than going to war. Maybe $30 a barrel would be too low but my point remains the same.


15 posted on 07/01/2017 2:32:56 PM PDT by jmaroneps37 (Conservatism is truth. Liberalism is lies.)
[ Post Reply | Private Reply | To 8 | View Replies]

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson