Posted on 12/10/2014 7:55:44 AM PST by C19fan
Iran's President Hassan Rouhani said Wednesday that the sharp fall in global oil prices is the result of "treachery," in an apparent reference to regional rival Saudi Arabia, which opposed production cuts.
Oil prices have plunged by more than 40 percent since June to around $65 a barrel, placing severe strain on Iran's economy, which is already hobbled by international sanctions imposed over its nuclear program. An OPEC meeting last month failed to reach agreement on production curbs, mainly because of Saudi opposition.
(Excerpt) Read more at news.yahoo.com ...
Maybe we should just bomb Iran, and put them out of their misery..................I hate to see them suffer so.
Are unfortunate events about to occur in Saudi Arabia?
It is hurting companies here in the US too. I play racquetball with a guy here in Tulsa who heads an oil & gas company. All of his Bakken wells are losing money. He'll be shutting them down when the hedges expire.
Things will get really dicey for the mullahs if they can’t pay the thugs that enforce the theocracy. The Saudis have huge cash demands on the subsidies they are giving Egypt and other Sunni groups. They simply will not tolerate a big revenue shortfall and will pump whatever volume of oil to maintain the flow of cash. Underscores the point that there will never again be a 1974 type oil embargo. Oil producers will sell to anyone, anywhere that has the hard currency to pay. Otherwise they would wither and starve. Oil would find its way to American shores with sellers begging us to buy regardless of American foreign policy. Increased American oil production is changing geo-political realities.
Tulsa will survive.
Good people who mostly know how to work hard.
This is what happens when we use fiat money to buy hard goods.
You’re prolly right. Nothing will cause the price of oil to rise faster than a good ol oil field bonfire.
Oil has become an addiction in the middle east...
The days grow short.
Saudi Arabia need a high oil price to support the Royal Family ,which is half the country , LOL
LOL
Its the will of your allah achmed...
F U
It would be interesting to see how the value of a dollar holds up against a barrel of oil since, say, 1970. Any of you economic eggheads out there have such a chart handy?
people from mineral rights family like mine learned long ago not to depend on the royalty checks. It’s always a welcomed bonus, but never to be depended on.
In the game of Geopolitics you would think that an emissary from the regime (ours) would go to Iran and quietly let them know that shutting down their nuclear program, (or at least pretending to) will be rewarded. wink wink nod nod.
From a tinfoil hat perspective, since oil companies in the western world really don’t answer to any government, Obama can punish them as much as he wants, but they will still do whatever is necessary to keep the oil flowing and the world stable.
All this means is the 7 sisters are sending a message to Russia and radical elements in the muslim world to quit their expansionism or else they will go bust. A real President would tell Buffett to suck it up, hedge his bets and fast track Keystone.
Oil quotes are priced in US dollars already, so you would need to identify what benchmark you want to use to compare oil and the dollar to.
Gold, market basket of food, price of a Chevy Impala, govt CPI deflator, etc
How can a producing well loose money?
Once the well is producing, there is little direct cost associated with it. Almost all of its output would contribute to cash flow.
Iran needs oil at $140/barrel to balance their budget. Saudi Arabia could get by at $70/barrel.
Hey, Rhouhani. Sucks to be you when the masses can’t get the basics to live.
Ping
I’m sure it’s putting a real hurt on our domestic producers too.
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