Posted on 01/12/2016 8:12:07 PM PST by TigerClaws
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Oil dive deepens to 12-year low; $20 warning on China Reuters Oil prices fall for sixth day as hopes for recovery fade Reuters Oil down again to 12-year low; $30 handle looks more likely Reuters Oil slumps towards 11-year low, ignoring Mideast tensions Reuters Oil ends 2015 down 35 percent; long, painful hangover seen Reuters
NEW YORK (Reuters) - A brutal new year selloff in oil markets quickened on Monday, with prices plunging 6 percent to new 12-year lows as further ructions in the Chinese stock market threatened to knock crude as low as $20 a barrel.
Amid an accelerating tailspin that shows no sign of slowing, Monday's dive - the biggest one-day loss since September - triggered a rash of panicky trading across the market.
(Excerpt) Read more at finance.yahoo.com ...
Exactly
But it will go back up after most of the domestic producers are bankrupt. The Saudi’s and their proxy's will simply buy our domestic producers.
The price will spike like 74 except this time there will be very few domestic producers.
So then the bottom line is who can survive the hurtin’ the longest? The House of Saud - who are rolling in gold bullion ... Or the American venture capitalists - who now, leveraged to the hilt, all have their manhood squarely on the chopping block with worthless fiat debt?
In California we still have to look to find a price under $3.00 a gallon.
Unlikely. The al Sauds are pious enough. The revolts in Iran (1979), Egypt, Libya and Syria occurred because the rulers were irreligious. It's a global phenomenon in majority Muslim countries. The rulers are expected to be holier than Muhammad. That is why so many are edging towards imposing shariah law. Not because the rulers want to, but because if they don't, somebody else will, over their dead bodies.
this story is made up.
..........
KSA is at war with Iran, and their friend Russia.
KSA will pump as hard and as long as, *Russian money* holds out.
... *any estimates* on how long that is?
Saudi Arabia Will Be Broke In 5 Years, IMF Predicts
As crazy as it sounds, the Saudis are going broke.
Of course you wouldn’t know it if you read the account of King Salman’s latest visit to Washington which included booking the entire DC Four Seasons and procuring a veritable fleet of Mercedes S-Class sedans.
http://www.zerohedge.com/news/2015-10-21/saudi-arabia-will-be-broke-5-years-imf-predicts
This is made up? I’m curious. Saudis with no money means the Kingdom collapses.
It's not a workable plan. The Saudis would have to make hundred of billions of dollars in payroll expenses and oil and gas royalties. Or Harold Hamm and his ilk will simply get a bunch of investment bankers together to finance his next venture, hire the laid-off workers, lease idled exploration equipment and sign new oil and gas leases at previously shuttered fields.
Why? Plenty of poor Muslim countries where the rulers are sitting pretty. Yemen is a fight between Sunnis and Shiites. Algeria, Iran (1979), Syria, Libya and Egypt all went through ructions because the leaders were secular.
Besides, IMF projections assumed no Saudi spending cuts. They have cut spending, and will continue to cut spending. Heck, Saddam cut spending to the bone after he was evicted from Kuwait, but managed to stay in power until he was toppled by US troops in 2003. Given how the Baath Party has morphed into ISIS and given the Iraqi government a run for its money despite being run on a shoestring relative to the present Iraqi government, it's likely Saddam would have died in office if Bush hadn't turfed him. This is despite the fact that Iraq's GDP per capita was roughly the same as Egypt's ($1300 per year) when the US invaded, and Saddam had to rely the 20% of the population that was Sunni Arab to hold down the 80% of the population that was Shiite or Kurdish.
“This will also make the Saudis vulnerable to collapse economically - and collapse that kingdom. “
It’s also really bad news for both Russia and Venezuela. Actually, there are numerous countries that depend on oil revenue, that have “pulled a USA” and spent beyond their means who have no alternative and may go under too. It would tickle me to no end to see the whole ME go bust!
“Venezuela has already folded. The socialists thought they could pump oil and buy 51% of the vote forever. When the price dropped, they couldn’t afford the social spending anymore. Voters voted them out.”
Well, Maduro is still there! When will then send him packing? CAN they send him packing?
“In California we still have to look to find a price under $3.00 a gallon. “
Where in the hell do you live in California? I live in the Bay Area. Just filled up at Costco in Vallejo, $2.31 for Regular, 92 Octane was $2.51! Regular grade has been as low as $2.02.
In short...Yes.
When stripper wells are stripped away, oil may rise
http://freerepublic.com/focus/news/3382846/posts
Sell everything! 2016 will be a ‘cataclysmic year,’ warns RBS
http://freerepublic.com/focus/news/3382975/posts
That's not the sort of development I've assumed; I've always understood the Baath party is or was nationalist and leftist in character. It surprises me to hear they've all converted converted to Islamism.
...despite being run on a shoestring relative to the present Iraqi government...
I'm a little curious about this too; Isis seized the wells, along with territory, weaponry, food and slaves. All that this has cost them is human life--at least half the lives are the other side's. Neither is of any concern them. They're running their economy free of overhead or obligation. If the price goes lower, they just pump more. If they run out material, weapons or food they just they just take it. Whose to stop them?
Well that's my understanding and I'm by no means an expert.
I'm not so sure this is entirely the work of the Saudis. With an election so close, dems desperate to stay in power, international finance's plans for a carbon market, obama's hatred of energy development, and concerns about rampant real inflation, lower energy prices must seem an attractive temporary tactic. I wouldn't be surprised to find Soros involved. The minute they've neutered domestic production and won the election, prices will skyrocket.
Happening in Alaska right now. The government doesn’t have the guts to make the cuts yet.
Venezuela seems to be making money in other ways.
American Airlines writes off $592 mln trapped in Venezuela
http://finance.yahoo.com/news/american-airlines-writes-off-592-134747157.html
Russia's federal budget is reliant on commodities revenues - according to official data, commodities contribute around 60 percent of the federal budget; in reality, that number is closer to 75--80 percent as much of the service sector depends on money from oil and gas. _Russia's Oil Luck or Curse
So, Putin claims a 50% dependency. Official data puts the number closer to 60%. And "in reality," the number may be as high as 80%. Or perhaps even more.
While most of the cars manufactured in China are sold within China, exports reached 814,300 units in 2011.[4]...In 2010, both sales and production topped 18 million units, with 13.76 million passenger cars delivered, in each case the largest by any nation in history.[8] In 2014, total vehicles production in China reached 23.720 million, accounting for 26% of global automotive production.[9]
And as for the propaganda about the collapse of China every week since the end of 2004,...that was a typo. I meant to write since the end of 2007.
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