Posted on 05/05/2025 11:22:54 AM PDT by Miami Rebel
Oil producing countries are bracing for a bumpy ride this year, with a precipitous drop in prices to the lowest levels in four years seen as the initial, alarming sign of looming turmoil.
A price drop benefits any country seeking to cut its fuel bill. But in oil producing nations, lower prices can feed economic troubles, and sometimes political unrest, as governments slash spending.
Analysts who had already been predicting lower oil prices because of softening demand amid increased global production said the possibility of a tariff trade war and the overall climate of uncertainty could well deepen producers’ woes.
“The steep price dive and overall volatility is sending a very strong signal that the global economy is going to be rattled this year and that will translate into a lower demand for oil,” said Gregory Brew, a specialist in oil and gas geopolitics with the Eurasia Group, a New York-based risk analysis organization.
Earlier this year, the price for benchmark crude held steady around $73 a barrel, high enough to sustain the budgets of most producing nations. But some countries, like Saudi Arabia and the United Arab Emirates, base ambitious development plans on a price of at least $90 a barrel, analysts say.
Saudi Arabia and the United Arab Emirates have earmarked hundreds of billions of dollars for giant projects to try to diversify their economies away from oil. Although Saudi Arabia pays for its Vision 2030 development program outside its annual budget, the huge, futuristic city project, Neom, depends on oil revenues.
In Iran, international sanctions have whittled its oil customers down. There’s China, but its demand for oil has slackened markedly amid an economic slowdown.
(Excerpt) Read more at nytimes.com ...
how much of cost of new production is going thru the EPA and other regulations and red tape? The cost is in time the money is tied up, the same as it is for mining for rare earth minerals or any construction project.
Time is money...the cost of money.
“But in oil producing nations, lower prices can feed economic troubles, and sometimes political unrest...”
“Wouldn’t you know that the New York Times would find
SOMETHING WRONG WITH FALLING OIL PRICES.”
Are you Venezuelan or Iranian? Because NOTHING in this article suggests that this represents a problem for the United States.
Exactly.
That’s THEIR problem, not ours. I’d make a wild speculation that political unrest in Venezuela, Iran, and Russia is not a bad thing for us.
Falling oil prices lead to lower energy costs. So we would pay less for electricity, fuel oil, air travel and gasoline. That will make us better off and that’s something the NYT hates because it will make Trump look good and interfere with the media hate fest that is now targeting Trump.
The downside is that prices for US consumers will come down first food, gas, heating, transportation etc. The lower prices are bad for Iran and Russia.
The NYT wants US economy to fail and CCP, Iran and Russia to win. That way the Dems have a chance at the midterms.
Is the geopolitical impact of declining oil prices fake news?
Brent crude was $80.19 on January 2. Today it is $60.14. If you think that that doesn’t severely weaken petro-dependent countries, you have your head buried in the sand.
Yes dear.
or more production
The USA could boost demand by refilling our SPR
Which Biden drained so low, reportedly the facilities were damaged
SPR sales in the last administration were at an average price of $95 per bbl.
The NYT is most alarmed that the crashing oil prices will benefit Trump. Production costs should bring down prices and smother inflation. Promises made. Promises kept.
People missing what’s going on. OPEC+ increased production after years of keeping it low, throwing a wrench into Trump’s (and others) exploration plans. They did this to slow exploration and production. If OPEC+ can’t make easy money, they decided no one gets to make easy money. Now OPEC+ is going for market share. Once it gets to its goal, the cuts will come back and the oil industry will be caught with its pants down due to low investment. Drive a lot now, because you won’t like what happens later.
Women, children, and Russians hardest hit.
How about what Trump paid when he filled it during his first term?
Or at least filled as much as Schumer et al would allow
We won’t get the benefit of lower gas prices for another few weeks yet, until the winter-summer gas switchover is done.
It make Trump look good and we’ll not have any of that comrades.
New York Times
Geez, it’s almost like you have the ability to read and interpret data without imposing political preconceptions.
Funny that the Saudis announced their plans to increase production after Trump spent a weekend with the Prince. Kinda got the feeling this was not only unexpected but a Trump drive to get energy prices and inflation down as a priority
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