Posted on 10/07/2015 12:50:47 PM PDT by Lorianne
Saudi Arabia on Sunday made deep reductions to the prices it charges for its oil, hard on the heels of cuts last month by rival producers in the Gulf.
With U.S. production still increasing despite lower oil prices, members of the Organization of the Petroleum Exporting Countries are battling to keep their share of the last growing markets in Asia.
In a list of official prices sent to customers, state-oil company Saudi Aramco cut the price of its light-crude deliveries to Asia by $1.7 a barrel. As a result, it switched to a discount of $1.6 a barrel against the rival Dubai benchmark from a premium of 10 cents a barrel previously. The company also cut its prices for heavy oil by $2 a barrel to the Far East and by 30 cents a barrel to the U.S.
The move come as Iran, Iraq and other countries in the Middie East made deeper cuts in their official prices than Saudi Arabia last month.
Saudi Arabia has vowed to keep pumping at high levels as it hopes lower oil prices will stimulate Asian demand and hit rival production in the U.S. that is expensive to produce. But while Chinese economic growth is slowing, U.S. production rose by about 68,000 barrels a day in July, according to the U.S. Energy Information Administration.
(Excerpt) Read more at marketwatch.com ...
Drill baby drill!
Obamas other best friend.
Just a couple of days ago the word came out that Putin (or his people) were going to meet with OPEC and promote a run up in price.
So much for that.
That’s the problem. There is no profit to drill in the US. Oil and Nat Gas are too cheap.
Why are we still buying Saudi oil when our drillers are going bankrupt? They are the main financiers of Muslim terrorism around the world.
Saudis are competing with cheap as free ISIS Oil... but just wait until cheap Iranian oil floods the market. It will look like South Carolina does right now.
Yesterday Google News pushed an article predicting a spike in gasoline prices.
This is exactly the opposite of what Putin wants.
I bet that Putin is pissed.
I bet that he will attempt to put SA out of business.
The fracking boom was the ONLY thing propping up the national economy. 0dingo destroyed that.
Our gasoline went up .16 from Monday to Tuesday here in Missouri.
Only much drier...
I’ll get the popcorn!
Because the saudis can produce oil cheaper than us.
Until the US can pull oil out of the ground and sell it at saudi price levels and still turn a sizable profit, we continue to buy saudi oil.
Free markets work. We buy from the cheapest producer.
the saudis are a good friend and this action hurts the russians
With friends like this...
Countries don’t have friends, they have interests.
In this case, perhaps our interest align.
The potential positive international effects are staggering.
We really do have them over a barrel.
We can stop producing and just wait for prices to rise. Eat up all their oil on the cheap.
We could also put sanctions on Iran and Saudi Arabia and say no to all of their oil. It would crush them and the larger world of terrorism with it.
We could share fracking tech with our allies and make a vast alliance agains islamosupremacism.
It will take a different President who is opposed to terrorism, but it could be done.
This is how they make war with Russia.
Putin is backing the Shia, Saudi is Sunni. No reason for the Saudis to play nice with Putin.
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