Saudi Arabia & Russia Oil partnership breaks down : UPDATE - OPEC+ drops output, Oil prices plunge! Angola leaves OPEC!

[dtownreppin214]

A lot of these frackers are headed for bankruptcy.

- Drilling for shale is very capital intensive.
- Hence a lot of these companies being highly leveraged/no cash flow.
-That was cool a few years ago when there was an abundance of cheap/PE financing available but it's been drying up.
-Also a lot of my friends who work in the industry have told that most of the easy fracking locations have been taken. They have had to drill subprime locations in order to meet lender demands.

Texas is about to feel it, but my Costco gas is about to hit a $1.

 

[Oldschooler]

Best believe Amerikkka is going to put pressure on the Saudis by bringing instability to the middle east by pulling their military aid and forces out of there.

 

[the cac mamba]

Texas is about to feel it, but my Costco gas is about to hit a $1.

if texas' economy crashes on trump

 

[thatrapsfan]

Oil plummets 30% as OPEC deal failure sparks price war

Worst one day drop in oil price since Gulf War. Already hit $30 and this could just be the beginning with demand down because of coronavirus and production up.

 

[Secure Da Bag]

$2/gal gas?

Let's get it.

 

[Tres Leches]

Maduro not gonna like this

 

[Strapped]

Excellent ,the Russians are about to crush them . Let the games begin

 

[dtownreppin214]

if texas' economy crashes on trump

It won't happen immediately. All the companies are hedged out about a year. So it looks like Biden is getting left a shytshow.

 

[MushroomX]

I could see Putin telling Trump to deny Saudis any relief effort if it goes full pandemic. That's the problem with SA, is that they hedge their economy on Oil, Oil pays for imports of Medical supplies but they don't seem to produce any or in small amounts to deal with CV.

 

[Oldschooler]

I could see Putin telling Trump to deny Saudis any relief effort if it goes full pandemic. That's the problem with SA, is that they hedge their economy on Oil, Oil pays for imports of Medical supplies but they don't seem to produce any or in small amounts to deal with CV.

The issue is they can afford to lower the price more than anyone because it's so cheap for them to extract it. If US won't offer them medical supplies they'll just start trading with China or India. Only way to do it is if everyone isolates them.

 

[GnauzBookOfRhymes]

At what point to Trump voters that were living high off the hog for the past 3 years start turning on him because their losses are mounting?

Never. it’s a cult. They think this is their “last stand.”

 

[Wargames]

It won't happen immediately. All the companies are hedged out about a year. So it looks like Biden is getting left a shytshow.

Sounds about right, just a faster cycle than last time

 

[Red Shield]

Maduro not gonna like this

him, Iran, Nigeria...


shyt if you're any oil producing country outside of the Saudi's.... you're not gonna like this shyt

 

[Hahahaha]

$2/gal gas?

Let's get it.

Sounds great until people start losing their jobs and can't afford their car loan let alone gas

 

[jj23]

it honestly would be bad. I didn't think the coronavirus was pushing markets down like that but it's really hammering shyt and looks like another bad week is on the horizon. If I was Trump I'd be on this shyt nonstop but he likes to downplay it.

Problem is, Trump has no leverage with Saudi Arabia or Russia.

He let both of them run rings around him, and they seem to have some leverage on him.