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Thread: All Out oil war

  1. #1
    Join Date
    Jan 2017
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    Default All Out oil war

    All Out oil war
    ----------------

    Russia and Saudi Arabia did not reach an agreement last week about
    reducing the oil production.

    Saudi Arabia flooded the world with cheaper oil, threatening to destroy OPEC.

  2. #2
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    Jan 2017
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    4,129

    Default

    Quote Originally Posted by oak333 View Post
    All Out oil war
    ----------------

    Russia and Saudi Arabia did not reach an agreement last week about
    reducing the oil production.

    Saudi Arabia flooded the world with cheaper oil, threatening to destroy OPEC.

    Here is the link:

    https://www.zerohedge.com/commoditie...ing-oil-prices

  3. #3
    Join Date
    Jun 2014
    Posts
    3,458

    Default

    I wonder how low it wil go when there will be NO BIDS on the market

  4. #4

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    I am thinking countries like China and Japan will benefit greatly, and most of Europe. Lot of bankruptcy in the oil companies if persists

  5. #5

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    Always thought oil should be cheaper than water. Yawn.
    Buy Low Sell High

    Keeping it simple with the Eagles, Maples and Krugs....

  6. #6

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    Quote Originally Posted by brutus2 View Post
    I am thinking countries like China and Japan will benefit greatly, and most of Europe. Lot of bankruptcy in the oil companies if persists
    with no new exploration and investment means higher oil prices in coming years
    solar and wind are just a joke in term of making up for the petroleum based energy.
    I see natural gas and nuclear energy as more realistic future energy supply

  7. #7

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    We already had an oil war when the Saudis tried to kill the nascent U.S. fracking with cheap oil. U.S. companies figured out how to thrive in the cheaper oil environment and the Saudis almost lost their shirts in the process. This is just the normal selfish/stupid. It would benefit all producers if prices stay up by curtailing production but it benefits producers to sell everything they can pull out of the ground.

  8. #8

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    Quote Originally Posted by oak333 View Post
    All Out oil war
    ----------------

    Russia and Saudi Arabia did not reach an agreement last week about
    reducing the oil production.

    Saudi Arabia flooded the world with cheaper oil, threatening to destroy OPEC.
    I think opec can be considered broken long time ago since no one cooperate, every opec member cheats.

  9. #9

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    Quote Originally Posted by DBCooper View Post
    We already had an oil war when the Saudis tried to kill the nascent U.S. fracking with cheap oil. U.S. companies figured out how to thrive in the cheaper oil environment and the Saudis almost lost their shirts in the process. This is just the normal selfish/stupid. It would benefit all producers if prices stay up by curtailing production but it benefits producers to sell everything they can pull out of the ground.
    I think this time is different becoz
    1. pension fund/lending institution are not fooled again to lend more money to the shale drillers
    2. all the sweet spot were drilled up and produced already, Now all in cost is no longer 35-40 $/bo but closer to > 50$/bo. Fracking innovation is near or at its peak, can't drive production cost down further.
    3. Obama is weak, Saudi don't fear repercussion from the US for killing their shale oil

    I think this time Saudi likely got the ok from trump for starting this price war. Remember tie US tie to Saudi is much cooperative than with Russia. Trump don't mind dunking putin with some cold water. Sure US shale get hurt on the job front by it can be offsetted by lower energy prices.

  10. #10

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    Is Saudi Arabia thinking they can put so many other oil companies out of business by dumping?, or do they have bills to pay. I discussed with friend last night and they said Saudi's are so rich beyond belief, well why don't they just start turning the oil spigot off instead.

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