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Thread: All Out oil war

  1. #11

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    Quote Originally Posted by everything1 View Post
    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.
    Saudi Arabia and OPEC were trying to cut back production in order to sustain prices. Russia decided to say 'nah, we'll produce as much as we want' in an attempt to play hardball and get away with over producing while everybody else was holding back. Saudi Arabia, whose cost of production is $10 a barrel, decided to say "**** you, let's play this game" and flexed their muscle.

    Right now Putin is regretting his miscalculation.

  2. #12

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    Looking at the big picture:
    China is reported to be at a near standstill on production
    Saudi & Russians are in a price war
    Brexit took a chunk out of the EU, Italy is closing down regions, Turkey plowed down fencing to allow "migrants" into Greece
    The US markets (& others) are taking a beating.
    Runs on places like Cosco are being reported (although I am seeing less than is being reported in my area)

    It's actually a pretty good time to be a shop on main street in the US, as of today.
    We will see what tomorrow brings.

  3. #13

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    Well, they can't do both, cut and increase. They can't both like American oil industry either.

  4. #14

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    Quote Originally Posted by everything1 View Post
    Well, they can't do both, cut and increase. They can't both like American oil industry either.
    Yes they can, they do it all the time. OPEC comes to an agreement: "I'n order to sustain prices we'll produce X numbers of barrels, these are the limits for each member". That's your cut. Then individual members ignore the agreement and produce more than they should in order to make more money (and even hope to gain market share). There's your increase.

    Russia was trying to have its cake (lower world production in order to increase prices) and eat it too (not being constrained in how much Russia could produce). If anything this is how you deal with Russia, which are about to fold. I mean for Russia oil accounts for 16% of GDP, 52% of their federal budget revenues and over 70% of total exports. This is not an oil war, this is a solid b1tch slap to Russia and they will take it and back off.

  5. #15

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    Quote Originally Posted by DBCooper View Post
    Yes they can, they do it all the time. OPEC comes to an agreement: "I'n order to sustain prices we'll produce X numbers of barrels, these are the limits for each member". That's your cut. Then individual members ignore the agreement and produce more than they should in order to make more money (and even hope to gain market share). There's your increase.

    Russia was trying to have its cake (lower world production in order to increase prices) and eat it too (not being constrained in how much Russia could produce). If anything this is how you deal with Russia, which are about to fold. I mean for Russia oil accounts for 16% of GDP, 52% of their federal budget revenues and over 70% of total exports. This is not an oil war, this is a solid b1tch slap to Russia and they will take it and back off.
    i have remarked ( over time) that some who do not use western statistics, after all live well. In most of the eastern countries, people have a garden and grow a lot of foodstuff which we nowadays have to buy ( and pay taxes on ).
    Don't underestimate the resilience of eastern people, I have seen after the soviet union capsized how poor they were and nevertheless had fun. Amazing how our vieuws differ from theirs.

    Golditiki2+++

  6. #16

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    Quote Originally Posted by DBCooper View Post
    Saudi Arabia and OPEC were trying to cut back production in order to sustain prices. Russia decided to say 'nah, we'll produce as much as we want' in an attempt to play hardball and get away with over producing while everybody else was holding back. Saudi Arabia, whose cost of production is $10 a barrel, decided to say "**** you, let's play this game" and flexed their muscle.

    Right now Putin is regretting his miscalculation.
    Heh, right about know Putin and his compadre Twitterman are probably busy cleaning the brown liquid that's oozing out their shorts and running down the ole legs.
    Buy Low Sell High

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

  7. #17

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    Quote Originally Posted by DBCooper View Post
    Yes they can, they do it all the time. OPEC comes to an agreement: "I'n order to sustain prices we'll produce X numbers of barrels, these are the limits for each member". That's your cut. Then individual members ignore the agreement and produce more than they should in order to make more money (and even hope to gain market share). There's your increase.

    Russia was trying to have its cake (lower world production in order to increase prices) and eat it too (not being constrained in how much Russia could produce). If anything this is how you deal with Russia, which are about to fold. I mean for Russia oil accounts for 16% of GDP, 52% of their federal budget revenues and over 70% of total exports. This is not an oil war, this is a solid b1tch slap to Russia and they will take it and back off.
    IMO I think Saudi would have let trump know about it before doing something this drastic.
    I also know putin has prepared russia for 30$ oil. However, claim versus reality are 2 different things.
    let see how long Russia would last
    meanwhile, low oil price can help Chinese economy to not sink further.
    so far, i'm seeing covid19 as more hyped news than a serial killer.
    If we report daily death count from car crashes, heart disease/obesity, and drunk driving, eaters will freak out too.
    No doubt CV is very contagious, but it will be just another bug in our body just like many other common flu, and small pox

  8. #18
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    Quote Originally Posted by everything1 View Post
    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.
    SA is bankrupt... they needed to start borrowing BIG since 2014. They need oil @ $120 to pay for their retarted socialist crap.

    By doing this they committed su´cide.... there will be blood

  9. #19

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    Quote Originally Posted by DutchSilver View Post
    SA is bankrupt... they needed to start borrowing BIG since 2014. They need oil @ $120 to pay for their retarted socialist crap.

    By doing this they committed su´cide.... there will be blood
    seem putin was ready for SA's bluff
    https://business.financialpost.com/p...yOfFiQQq2cj2pk

  10. #20

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    Quote Originally Posted by DutchSilver View Post
    SA is bankrupt... they needed to start borrowing BIG since 2014. They need oil @ $120 to pay for their retarted socialist crap.

    By doing this they committed su´cide.... there will be blood
    They can pump 8,000 barrels a day at $40 or 11,000 barrels a day at $30. Their production cost would still be the same, $10/barrel. I think their max capacity is around 12,000 barrels a day.

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