The agreement between Russia and OPEC ended this month anyway. What is being reported is actually the failure of a future agreement.
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Russia is desperate for money. They want into European sales that the past agreement limited.
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Our domestic oil production is soaring, offering competition that OPEC has never seen.
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Our domestic producers need about $34 barrels to break even, fracking is not as cheap as it seems.
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The big losers will be Iran, Mexico, and the S Americans because they don’t have many refineries to sell finished product.
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We could well see $1 gas.
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The other driver is the dramatically lowered demand by the Chinese, they are really hurting for business and travel. So there is a glut + increased production.
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The Saudi’s and their neighbors still make money at $19 oil.
I believe Iran is the real Saudi target here and not the Russians. Saudis see Iran struggling with the Corona virus, and figure this will be the final straw.
Oil's ALL they have to pay for their cradle to grave welfare. For that, they need oil to be way up over $75. What happens to the Saudi royals when the natives go unpaid and threatens to start lopping heads?