Posted on 03/09/2020 3:20:49 PM PDT by bananaman22
The oil price war that Saudi Arabia and Russia started will hurt the fiscal revenues of the oil producers in the Persian Gulf, including the Saudis, OPEC’s top producer and the world’s top oil exporter, according to credit rating agency Fitch.
“The collapse in oil prices will clearly be seen in fiscal numbers for the Gulf,” Jan Friedrich, the senior sovereign analyst for the Middle East and Africa, said on Monday, as carried by Reuters.
(Excerpt) Read more at oilprice.com ...
By the way - does anyone remember who those “Peak Oil” posters were so we can ping them to this thread?
If it lasts very long, look for high unemployment, starting in the high cost fields, but you can’t make money at $30 anywhere. Things are going to get tight around Houma.
Lol! I couldn’t care less if it triggered a complete economic collapse there.
Russia just told the Saudis they were done with quotas. Our fracking is flooding the world with oil and gas.
Russia is hoping by killing the price of oil, fracking will hit a all in the US. They’re not happy at Trump hassling Merkel about their new pipeline.
What Russia may have not taken into consideration is the wet gases that are stripped from the natural gas leaving the methane for home heating, cooking, etc. The wet gases include propane, butane and ethane etc.
That’s where the money is. Shell is about to start operating an enormous cracker near Pittsburgh to convert ethane into plastic pellets. There’s still money to be made no matter how far down oil prices drop.
Yeah, but XOM has one of the best dividends out there.
Buy XOM as a drip?
I should’ve done that with Philip Morris during the anti-smoking crusade back in the late 90’s. I coulda been rich.
You’re suggesting Russia started a price war to fight terrorism?
What I said was with the price of oil low there will be less money going into the Middle East. Some of the nations in the middle east have used their oil money to support terrorism.
So with less money they may have to cut corners and perhaps one of the corners they cut will be money to support terrorist.
I have no idea why Russia started the price war on oil.
Yes I got it in a DRIP program
The Saudis did this to take out Iran.
Isn’t oil the devils coffee?
But of course, if it is done simply to cripple higher cost suppliers - read, American shale frackers - that is a problem if and only if the lower cost suppliers exploit consumers after the frackers are forced out of the market.
If, and to the extent that, the president expects the latter, he should impose a protective tariff on oil. Otherwise, if OPEC is dead and world oil prices are free market prices, what actually is our beef?
The advantage of a tariff is that it caps the price of oil at the break-even point of the frackers. The disadvantage is that it makes the US oil market an unfree market. One way of looking at it is that the frackers can be used to create a de facto Strategic Petroleum Reserve.
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