Even so, come Lord Jesus!!
Posted on 03/10/2020 4:25:20 PM PDT by CheshireTheCat
Global oil demand was already in the doldrums amid widespread restrictions on trade and travel in the wake of the novel coronavirus outbreak
But Russia balked at oil production cuts, the Saudis slashed prices in retaliation and global markets went into a tailspin on Monday
(Excerpt) Read more at scmp.com ...
Because there is not answer to the question of why an arab / muslim does anything. Even if they tell you something you can’t believe it.
MBS probably isn’t even sure himself why he did what he has done now. The young man is off on a power trip I think. He did it in 2014 / 2015 and he is doing the same thing again.
If you figure out the arab / muslim mind please let me know because you will be the first to do it.
They did it five years ago and it didn’t seem to hurt them too much at all.
They need high oil prices to keep the welfare state going..there trying to force opec to the table...
They have also spent a lot of their wealth fund. Anything under $50 a barrel is not good for them. Russia needs hard currency and they have a lot of oil, so this may get interesting for a bit.
Magog - Russia (IMHO)
Sheba and Dedan - Saudi Arabia
Persia - Iran
House of Togarmah - Turkey
Lots of stuff going on in and about with these places.
Ezekiel 38 - no doubt it will happen
[ Who is MBS? ]
Mohammed bin Salman (sp)
Unless you were being rhetorical.
[Because there is not answer to the question of why an arab / muslim does anything. Even if they tell you something you can’t believe it.]
Oil isn’t just under siege from structural cost issues, due to excessive debt, as well as the fact that fracking ain’t cheap. It’s also under attack from SJW fund boycotts, Bloomberg-funded environut interest group lawsuits shopping for a friendly District Court or Court of Appeals, as well as the possibility of a Democratic administration in 2021.
Bottom line is that the Saudis have the wind at their back re any attempt to rein in fracking output. They don’t need to, and can’t, eliminate US production. All they need is to bring it back down a few million barrels a day. Chinese demand will take care of keeping prices high. Chinese auto sales touched 26m cars a year in 2019 vs about 17m stateside. China’s annual car sales were 1.8m cars in 1999.
https://www.cnn.com/2020/01/13/business/china-car-sales/index.html
https://www.japantimes.co.jp/news/2000/05/30/business/toyota-to-enter-chinese-market/
Well of course they want the highest price possible. But they cannot control the market. All the OPEC members break their quotas, but this year they couldn’t even come to agreement on their quotas. Russia said it would not abide. So the KSA decided to slash prices and increase production. I think they can produce up to 11-12 million barrels per day. And they have the lowest cost of production of anyone. So if oil drops 25% but they ramp production 15% they don’t lose too much net net at the end of the day.
I think other factors are also at play. Harm Iran is definitely on the list of positive side effects. And, burn the alternative sector like fracking and shale oil producers who need $30-$40 oil to stay in business.
And also, it harms Russia. Russia is more diverse an economy but they may be getting a bit overstretched with their foreign adventurism. Iran is one of Russia’s biggest customers. So Russia will take a hit. And I am sure the KSA doesn’t like seeing Russia in Syria or in Africa.
[They have also spent a lot of their wealth fund. Anything under $50 a barrel is not good for them. Russia needs hard currency and they have a lot of oil, so this may get interesting for a bit.]
https://en.wikipedia.org/wiki/List_of_countries_by_sovereign_wealth_funds
MBS is right - the Russian ability to survive $25 oil for any length of is minuscule. Before the price war, oil prices were at $45, yielding $25 a barrel in revenues for the Russians. At a price of $25, the Russians would get $5 a barrel in revenues. How will the Russians plug the 80% decline in revenues?
Whereas the Saudi drop, while serious, is far smaller - $45 - $10 (production cost) yields $35 per barrel pre-price war. Post price war, they get $25-$10 = $15 per barrel. That’s still a 60% drop in revenues, but it’s a lot better that Russia’s 80% decline. And as noted above, the Saudis have a bigger war chest and a smaller population over which to spread the oil revenues.
DId you see bow OXY decided to cut their dividend to 11 cents a share?
Been thinking about this lately.
If you read about the Ezekiel 38 & 39 battle or war, it does say they turn on each other and fight each other.
Russia and Turkey aren’t exactly on friendly terms lately. Putin humiliated Erdogan a few days ago too by making him wait extra long before admitting them. The body language was awkward and harsh.
Maranatha!
[DId you see bow OXY decided to cut their dividend to 11 cents a share?]
CVX shareholders are also thrilled at having dodged the Anadarko buyout bullet. Talk about a Pyrrhic victory for OXY.
❤❤❤❤
Cool graphic.
Could it have something to do with the 4 Princes that were trying to overthrow the King? Was this a way to show the minions that SA still controlled the price of oil
Entirely possible, and frankly among the more logical moves they could do.
I fully agree with your post. There is just no upside to the House of Saud. Auto correct tried to make that House of Sand, and that might be right.
They are dreadful even to each other, and there has been another round of arrests of Saudi princes, including Bin Naef, who was formerly close to the CIA and British intelligence. The interminable war in Yemen was MBS’s idea, and no one in Riyadh dares call it a failure. This oil price war is his latest reckless move. I would not be surprised to see a coup against him, by the end of this year.
Amen!
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