***Oil prices plummet ***31%*** at start of trading Sunday***

[MelissaB]

***Oil prices plummet ***31%*** at start of trading Sunday***

Link to tweet

Does everything have to happen at once?

[ansible]

1. Finally, gas can drop below $3 a gallon here

[brokephibroke]

2. Gas will be $1.5

That is not good. The only question is how severe will the TrumpRecession be?

[BigmanPigman]

9. The article said we probably won't see the

prices in the US change much except the price at the pump will go down a bit, the oil companies will feel it though. This is to hurt Putin.

"Russia seems to be the target of this price war. But as Saudi Arabia tries to grab market share with bargain-basement prices, American oil and gas producers, including the fracking industry, will also feel pain."

"U.S. consumers are likely to see lower prices at the gas pump, but American oil producers — who lead the world in output — could be hurt by the oil price slide".

[Maeve]

3. Saudi Arabia Stuns World With Massive Discount In Oil Sold To Asia, Europe And U.S.

https://www.npr.org/2020/03/08/813439501/saudi-arabia-stuns-world-with-massive-discount-in-oil-sold-to-asia-europe-and-u-

[underpants]

4. The Saudis announced a massive release on Friday

They can take damage.


Lower prices help Trump. ?

[Maeve]

5. Lower prices hurt Putin

That's the goal

Saudi Arabia and other OPEC members sought to cut production to shore up oil prices. But the once-powerful cartel can no longer move markets alone. It needs the support of Russia, which is not an OPEC member but has recently been coordinating with the organization.

Yet Russia has resisted calls for production cuts. On Friday, the talks ended in failure. OPEC and its allies announced no new reductions and didn't even commit to extending current cuts.

So, Saudi Arabia is doing an about face. If it can't get the price back up, it's going to drive the price way down. It's offering to cut the oil price for the U.S. market by $7 per barrel, to Europe by $8 and Asia by $6. Paired with Saudi Arabia's ability to rapidly increase production — flooding the market with cheap crude — those unilateral price cuts will push the price of oil down for everyone.

https://www.npr.org/2020/03/08/813439501/saudi-arabia-stuns-world-with-massive-discount-in-oil-sold-to-asia-europe-and-u-

[MelissaB]

6. Hurts Putin and West Texas.

[Maeve]

13. True, but don't think that was the aim

And I feel for those hit by the fallout. Lived in OKC for a while and lost our first house during an oil bust in the mid-1980's (had to move, no one would buy, deed-in-lieu of foreclosure)

[leftyladyfrommo]

7. They are out to hurt Putin.

Lower gas helps me because I drive a lot.

[Roland99]

8. Dow futures sink 900 points late Sunday as crude prices plunge more than 20%

https://www.marketwatch.com/story/us-stock-futures-tumble-on-fears-of-oil-price-war-2020-03-08?mod=markets

Oil futures plunged 10% on Friday after talks between the Organization of the Petroleum Exporting Countries and their allies collapsed, with Russia refusing to agree to a Saudi-led plan for additional crude production cuts.

In response, Saudi Arabia over the weekend slashed crude prices and is preparing to increase production, in a direct attack against Russia’s market share, the Wall Street Journal reported.

Analysts said a price war could push crude prices down to $30 a barrel, especially as the economic slowdown caused by the coronavirus outbreak slows global demand.

[brokephibroke]

12. Down 1050

[Demovictory9]

14. yikes. negative 4%

[Calculating]

10. Jesus christ

This is NOT GOOD. Say what you will about gas prices, but a lot of people own oil stocks or work in the domestic oil industry. I wouldn't be shocked to see hundreds of domestic fracking/drilling companies go under, and lots of people are losing their shirt on oil stocks now.

[Demovictory9]

15. yes. this hurts folks living on their next egg

[2naSalit]

11. Shale oil in US and Canada will become too expensive to persue.

[DFW]

16. The dollar just lost another cent against the euro, almost at $1.14

The Euro was at $1.08 last week. The dollar is down six cents in a WEEK.

Gold is shooting skyward, already briefly passed $1700 an ounce, and is still within $5 of there in early far east trading, where it is already Monday morning.

[uponit7771]

17. Why is SA starting an oil war now ?!

[ooky]

18. To help Trump by boosting the economy. Lower oil prices mean lower prices for materials

and consumer goods. Don't know if its going to work though with short term with supply chain disruptions and business slowdowns from coronavirus fear.

[Calculating]

20. It really doesn't help though

It will bankrupt our domestic oil industry and put thousands out of their jobs.

[ooky]

21. Yes, our oil industry will suffer.

I don't know if it will bankrupt, but it will take a big hit it doesn't need to take in my opinion and just make a bad situation worse. Frankly, none of these artificial actions, i.e., lower oil prices or lower interest rates are going to stop the decline in the stock market because none of them address the root cause of the decline - the fear of a potentially chronic global economic slow down due to business disruptions caused by the virus.

[Volaris]

19. Cause the old man is either dead or dying, and cant now keep the kid from doing as he damn well plea

[BumRushDaShow]

22. The article I posted in LBN said

that they wanted OPEC+ (which includes Russia) to cut the production to reduce the supply, in order to bring the prices up and Russia (and the rest) refused. So they are going to make them "pay" for not going along with the strategy.