Posted on 09/27/2024 5:53:23 AM PDT by canuck_conservative
Saudi Arabia is prepared to abandon its $100-a-barrel crude oil price target as it moves to increase output, signaling its acceptance of lower prices, according to the Financial Times.
This decision comes despite earlier production cuts by OPEC+ members, which sought to keep prices high. Brent crude prices dipped below $70 earlier this month, the lowest since December 2021.
Despite this, officials plan to boost production starting December 1, potentially extending a period of reduced prices. This marks a shift from Saudi Arabia's previous focus on price stabilization.
Saudi Arabia's ramp-up in oil production, especially if paired with lowered prices, is likely to hurt the Russian economy.
Experts told Newsweek that Saudi Arabia's move would "strain" Russia's budget as it continues its invasion of Ukraine.
Russia relies heavily on oil revenues to fund its economy and military engagements in Ukraine.
As Saudi Arabia increases supply, global oil prices may drop, pressuring Russia, especially amid sanctions and its ongoing conflict in Ukraine. Russia's economic stability could weaken due to reduced revenues from oil, which funds key government sectors, including military efforts. The intensifying competition in oil markets could further erode Russia's market share, challenging its financial resilience...
(Excerpt) Read more at newsweek.com ...
Russia gets most of its revenues from O & G sales, so this is a direct hit to the Russian economy, already reeling from sanctions.
But, the low-oil-price strategy worked for Reagan, eventually leading to the peaceful implosion of the USSR, so who knows? Maybe we get a repeat, lol!
Interesting. Thanks for posting.
Pooty has a “war machine”? Who makes it, Nintendo? LOL! In his dreams.
Saudi’s Arabia applying economic sanctions to starve the war while we feed it with arms shipments.
Russia does generate billions from oil, but also it’s vast commodities- from uranium, to titanium to food to NG, diesel etc….they are in need of nothing and totally self sufficient….unlike the collective West….and no, they are not suffering from Western sanctions, they are in fact leading the world’s countries into de dollarization.
All eyes on the Brics Summit in October, it will be historic. The West is in severe decline, both morally and financially. Their is a “ new sheriff” in town, the old one, the US, has been corrupted beyond belief.
Brics is an amalgamation of losers.
FUKR
How many of the world’s nations do not comply with the US/NATO sanctions and maintain a strong economic relationship with Russia? There was an article, maybe on FR, stating many, if not most favor the Russian side. I believe the same article was trying to make the point that American sanction on Russia punished Americans as much as Russia.
You are a victim of western MSM news, non western media says nothing of the sort. I suspect you still think the Ukies are winning. Laughable.
Another victim of the Demoncrat’s Russian Derangement Syndrome….invented much like the Trump Derangement Syndrome.
Brics is an amalgamation of losers.
—————
Close to 70 percent of the world’s population. Get back with us when the Brics M Bridge Unit launches….it will put the final nail in the USD coffin.
Thanks to sanctions, Russia has never made so much from its oil. Thanks to the morons in DC and their even more stupid hinterland stooges, Putin has plenty for his arms industry.
You must remember, Putin doesn’t pay hundreds of billions in bloated MIC profits each year. Russia will spend 1/20 what NATO spends on defense this year. Also, Russia will borrow NONE of their defense spending.
Since the Russians are in great shape perhaps you should, for once, consider America and the American taxpayer rather than doing your PR work for the warmongering DC oligarchs.
Excuse me Clown, the accepted word to describe the current state of the Russian economy is Tatters
Just ask Ursula
There is never any scarcity of reports that the Kingdom of Saudi Arabia is about to increase oil output, particularly in an election year.
There is precisely no one anywhere outside KSA who wants to hear about restricted oil output, so there is never any difficulty finding such reports.
The Saudis went public with Saudi Aramco a few years ago, and that turned out to be defined as a few % of the company shares sold to the public — with the public being the Saudi Sovereign Wealth Fund and some Saudi banks. The IPO was conducted on the Saudi stock exchange.
One of the quietest little dirty secrets in the world of oil is the incorrect belief that pricing on NYMEX and in London somehow defines what OPEC (and +) sell their oil for. Why would those exporters care what a price determined on trading exchanges of hostile countries have to say?
Buyers (refiners) place a bid and the exporters say yes or no. If they say no, buyers bid up and the shipment happens. The real pricing determinant is the meeting on the phone between Chinese refiners and Aramco shippers, or Rosneft shippers. They may never even mention NYMEX.
I,for one, would love US low sulfur Diesel to approach $2/gal.
< $3/gal would be a good start.
Saudis’ only focus is that asinine Neom city. They either fund it or the leader loses his head.
Kinda like the DNC will do ANYTHING to keep DJTrump away from the WHouse — again.
Name a single raw material that the collective West can obtain only from Russia.
< crickets >
Didn't think so. In contrast, there is a plethora of finished products (high-tech goods, semiconductor chips, etc.) that Russia is incapable of producing for itself and that it hence must import from the West.
Regards,
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