Posted on 03/10/2020 11:57:29 AM PDT by Oldeconomybuyer
DUBAI/MOSCOW - Saudi Arabia said on Tuesday it would boost its oil supplies to a record high in April, raising the stakes in a standoff with Russia and effectively rebuffing Moscow’s suggestion for new talks.
The clash of oil titans Saudi Arabia and Russia sparked a 25% slump in crude prices on Monday, triggering panic selling on Wall Street and other equity markets that have already been badly hit by the impact of the coronavirus outbreak.
Oil prices LCOc1 recovered some ground on Tuesday, but were still 40% down on the start of the year.
U.S. President Donald Trump spoke with Saudi Crown Prince Mohammed bin Salman in a call on Monday to discuss global energy markets, the White House said on Tuesday.
Russia’s Energy Ministry also called for a meeting with Russian oil firms on Wednesday to discuss future cooperation with OPEC, two sources told Reuters.
But Saudi Energy Minister Prince Abdulaziz bin Salman appeared to rebuff the suggestion.
“I fail to see the wisdom for holding meetings in May-June that would only demonstrate our failure in attending to what we should have done in a crisis like this and taking the necessary measures,” he told Reuters.
(Excerpt) Read more at reuters.com ...
Oil is the single biggest source of income for Russia. Keep the pressure on SA!
The President should aggressively campaign on this.
Russia is waging an oil price war against the U.S. and its allies.
Russia wants to hurt a vital sector of the U.S. economy in an election year.
All the Rats’ rants about Russia supporting Trump are B.S.
Heck yeah! Gas back to .19c? Woo Hoo! LOL!
Two third world hellholes going at it.
Interesting game of chicken. The Saudis need oil above $80 per barrel to break even from a fiscal standpoint as oil is an important source of funds for the government. The fiscal break even point for Russia seems to be around $50 per barrel. The Saudis have a advantage in having a much bigger piggy bank in their sovereign wealth funds.
US frackers now have a production cost of $27 a barrel. They will not be knocked out by SA and Russia so easily this time around.
In fact, SA and Russia may be crying for mercy instead. SA needs $90 a barrel to run its welfare state, and Russia needs $50 just to pay their bills at their current low standard of living.
Great minds think alike!
The Saudis tried to drive US frackers out of business in 2016 when Brent fell below $30 a barrel. Yes marginal frackers went under but the stronger players survived and thrived.
An oil war tale of the tape.....
And boomers who lived thru gas lines in the 70s find this scenario incredulous. Like did Trump ask SA to not pump so much so the price stays high?
Interesting oil war to watch....haven’t heard much about how energy dependent EU is looking at this.
Saudi Arabia won’t always be moderate, eventually hardline Islamists will take over there, just a matter of when.
If it came out of the ground free, as gasoline, it would still cost me 40 cents a gallon, just because of taxes.
Yes and nearly double that in some states
I remember the 70’s gas lines, and if I was 20 years younger I’d be figuring out a way to buy crude oil. It’s on sale now, and unlikely to go much lower.
Saudi Arabia wins, no contest. Many of the best petroleum engineers based in Texas often work for Saudi Aramco, and the oil terminal at Dhahran is one of the most modern in the world.
Russia’s Energy Ministry also called for a meeting with Russian oil firms on Wednesday to discuss future cooperation with OPEC, two sources told Reuters.
^^^^^^^^^^^^^^^^^^^^^Y
Sounds like Russia blinked.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.