Posted on 03/08/2020 5:03:21 PM PDT by Hojczyk
Oil prices plunged 30% in early trading after OPEC’s failure to strike a deal with its allies regarding production cuts caused Saudi Arabia to slash its prices as it reportedly gets set to ramp up production, leading to fears of an all-out price war.
International benchmark Brent crude futures plummeted 30% to $32.05 per barrel. U.S. West Texas Intermediate crude dropped 27% to $30 per barrel, its lowest level since Feb. 22, 2016.
“This has turned into a scorched Earth approach by Saudi Arabia, in particular, to deal with the problem of chronic overproduction,” Again Capital’s John Kilduff said. “The Saudis are the lowest cost producer by far. There is a reckoning ahead for all other producers, especially those companies operating in the U.S shale patch.”
After the initial drop the losses were pared somewhat, with each contract trading down slightly more than 21%.
On Saturday, Saudi Arabia announced massive discounts to its official selling prices for April, and the nation is reportedly preparing to increase its production above the 10 million barrel per day mark, according to a Reuters report. The kingdom currently pumps 9.7 million barrels per day, but has the capacity to ramp up to 12.5 million barrels per day.
(Excerpt) Read more at cnbc.com ...
Bought today for $1.83.9
You live in a gulag.
I live in the “demned state” of California and it’s still well over $3.00 in Sacramento.
No argument from me there I definitely live in a gulag, selling my home next month and getting the hell out of this gulag CAN’T WAIT!!!
I an in Ventura county and we are paying 3.45 as of today!!!
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