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

[Wargames]

There are post here where I mention my belief that Russia’s aggressive attitude towards America (and EU) for the last 8 years was due to America getting out our own recession by forcing them out of the oil market and the Saudis to a secondary position. 2016 was their desperate gamble to put Trump in to reverse that, and now we’re seeing the endgame where Russia would like to permanently put America on the back foot in regards to energy production. I don’t think this is a spat between Russia and the Saudis. I do think this is them kicking us while we are down economically and trying to push us out and the Saudis helping them, but not wanting to be seen as working with the Russians.

As long as US/EU companies don’t sell their energy assets to them though our markets should recover.

 

[88m3]

Saudi Arabia is more screwed than Russia. Back in 2015/2016 when prices was hella low Saudi Arabia had to burn through a large amount of their cash reserves to the point the IMF said that if prices stayed low Saudi Arabia would go bankrupt. This was when oil was $65 a barrel. The Saudis need oil to be $86-88 a barrel to balance their budget. We are at oil at $30 a barrel they cannot sustain that for long. Before the last oil drop Saudi Arabia had $770 billion in cash reserves. From 2015-2017 that number dropped to $500 billion. Prices went back up again but things haven’t changed for the Kingdom. They have a very expensive war in Yemen, have a bloated military budget and plans to build a new city in the desert. So the Saudis can’t maintain this for long. Because if oil stays below $80 for the next 2 years they will have their cash reserves drop to $100 billion and we will see a insolvency crisis in the Kingdom. Bin Salman has made another rash decision which could bite him.

I guess the question is what are Saudi's current reserves and what Russia actually wants...

 

[ZoeGod]

Everything we know about Neom, a 'mega-city' project in Saudi Arabia with plans for flying cars and robot dinosaurs
It supposed to cost $500 billion to build.

 

[ZoeGod]

I guess the question is what are Saudi's current reserves and what Russia actually wants...

Saudi current reserves in about $496-500 billion so it hasn’t changed from 2016. Russia wants to destroy the US shale industry. Low oil prices will bankrupt oil shale companies as its very expensive to go after shale oil. Russia has other diverse ways to get revenue Saudi Arabia totally depends on oil so this could backfire big time for Bin Salman.

 

[#1 pick]

This sucks for the economy.

 

[Serious]

That'd be bad for Trump ultimately

Breh most Americans live in the now thus, the $400 away from an emergency.

 

[Serious]

Its almost if he was reading on here

 

[Serious]

Paid off my car already.

You mean you need not leasing the latest six series

What kind of 6certs cat are you

 

[thatrapsfan]

Saudi pushing production to even greater levels than people expected. People were talking about 10m barrels a day but they now plan to increase to 12.3m barrels per day.

This may be the end of the Alberta oil sands in Canada.

 

[thatrapsfan]

They're even selling barrels they have stored. Shyt about to get crazy. Return of the 90s with $9 oil price?

Spoiler: FT Quote

Saudi Arabia will supply the oil market with 12.3m barrels a day in April, marking a dramatic escalation in its price war following the collapse of a production agreement between Opec and Russia to stabilise the market.

The level is more than 2.5m barrels a day above what it was previously producing and greater than Saudi Arabia’s maximum sustained production capacity, suggesting that the kingdom will take barrels from storage to flood the market rapidly as it takes on rivals in a fight for market share.

Olivier Jakob at Petromatrix said Saudi Arabia was pursuing a “shock and awe” strategy to demonstrate it had the capability to raise supply faster than any other producer. “Saudi Arabia is going all in on trying to disrupt the oil market,” said Mr Jakob. “Over the weekend they signalled a price war and now this has gone straight to a volume war. The market does not need that much crude oil. They are dumping the oil from storage.”

 

[GnauzBookOfRhymes]

These are jabs/feints. Negotiation tactics. They will come back to the table with a deal. At the end of the day Russia and SA, when it comes to oil, have many shared interests. Whether either could "afford" an oil war isn't the question. Neither WANTS one.

 

[thatrapsfan]

Early fallout

 

[Json]

Early fallout

Think about the billionaires!!

How he gonna afford another yacht?

 

[Secure Da Bag]

You mean you need not leasing the latest six series

What kind of 6certs cat are you

The kind that's not. Yet.

 

[88m3]

Early fallout

painfully corrupt and indebted to his donors