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

[jj23]

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.

Also Trump took the threat of Iran sabotaging their rigs off the table. MBS can flex without consequence.

 

[thatrapsfan]

him, Iran, Nigeria...


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

Even the Saudis are playing a risky game. Last time there was a price war shale producers lowered their production costs and maintained market share. Domestically it will hurt Saudi, though they have huge cash reserves etc. But that won’t matter if it tips the global economy toward a recession when combined with the coronavirus hit.

Ironically the G20 meeting is in Saudi this fall, so could make for some interesting dynamics, if this goes on for long.

 

[thatrapsfan]

U.S. Stocks Were Halted After 7 Percent Plunge: Live Updates

Biggest one day decline in US stocks since 2008. Saudis may have just set off the recession

 

[Oldschooler]

If they set off a recession it'll be their death wish, there will be a proxy war to destabilize them. Countries will get their economies going by supplying money to the military.

Maybe the bright side out of this whole thing is if it helps change republican minds to invest in energy alternatives.

 

[FAH1223]

U.S. Stocks Were Halted After 7 Percent Plunge: Live Updates

Biggest one day decline in US stocks since 2008. Saudis may have just set off the recession

 

[jj23]

 

[cobra]

Two of trump’s bffs, Putin and MBS, wrecking the economy

 

[thatrapsfan]

If they set off a recession it'll be their death wish, there will be a proxy war to destabilize them. Countries will get their economies going by supplying money to the military.

Maybe the bright side out of this whole thing is if it helps change republican minds to invest in energy alternatives.

Cheaper oil probaby weakens business case to invest in renewables In short term it works out for consumers/ major oil importers.

 

[Red Shield]

Even the Saudis are playing a risky game. Last time there was a price war shale producers lowered their production costs and maintained market share. Domestically it will hurt Saudi, though they have huge cash reserves etc. But that won’t matter if it tips the global economy toward a recession when combined with the coronavirus hit.

Ironically the G20 meeting is in Saudi this fall, so could make for some interesting dynamics, if this goes on for long.

No doubt this shyt is risky for the Saudis. This shyt is probably why those Saudi royals got jailed...

 

[88m3]

This will hurt Russia just as much if not more than anyone else

 

[☑︎#VoteDemocrat]

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.

am I wrong, but aren't more frackers better off now as the technology improves?

 

[☑︎#VoteDemocrat]

Maduro not gonna like this

russia has his gold though

Exclusive: Venezuela removed 8 tons of central bank gold last week - legislator

 

[☑︎#VoteDemocrat]

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.

this could overthrow MBS

 

[☑︎#VoteDemocrat]

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

LONG TSLA?

 

[dtownreppin214]

am I wrong, but aren't more frackers better off now as the technology improves?

Technology has improved and brought down the breakeven price but this price is not going to be economical for any US Shale plays.

I'll say this, many shale producers will go under, but the hydrocarbons are still in the ground, and those assets will be bought on the cheap in insolvency proceedings. When the price of oil eventually goes back up and exceeds the break-even price, those assets will come back online.