General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsPutin just sparked an oil price war with Saudi Arabia -- and US energy companies may be the victims
Vladimir Putin just sparked what could end up being one of the ugliest oil price wars in modern history, and American oil and gas companies may be the victims.
This weekend Saudi Arabia dropped the oil bomb. It not only cut its forward crude price to Chinese customers by as much as $6 or $7 per barrel, but is also reportedly looking to raise its daily crude output by as many as 2 million barrels per day into an already oversupplied global market. Look out below.
The move by the Saudis is both a market share grab and a loud signal to Moscow that its done playing games. The dramatic action is in response to a contentious, and ultimately failed, OPEC meeting in Austria on Friday. OPEC members laid out a proposal to further cut oil output quotas by as much as 1.5 million barrels per day.
OPEC itself was aligned on the deal, but non-OPEC member Russia said nyet, effectively killing it. A source inside the negotiations tells me that as the two sides worked out production cut plans, in the end the red lines werent even close. The source added that the Russians definitely dont want to continue to support shale at least in part because the Rosneft sanctions were still too raw.
Snip
https://www.cnbc.com/2020/03/08/putin-sparks-an-oil-price-war-and-us-companies-may-be-the-victims.html
Turbineguy
(37,372 posts)Trump will cave on the sanctions soon.
KY_EnviroGuy
(14,495 posts)during the coronavirus economic slump?
After all, his two very best autocrat friends and supporters are participating....... ....
Farmer-Rick
(10,216 posts)Oh capitalism it causes such pain and suffering. But if prices are dropping it's not so bad except for Putin and the obsolete oil and gas corporations.
at140
(6,110 posts)Oil is being consumed faster now due to exploding middle class in Asia, but we still have a huge oil glut.
Countries like China & India have 10 times as many cars now compared to 1970's. Still oil glut? How?
LiberalArkie
(15,730 posts)at140
(6,110 posts)I think the current glut is from oil shale deposits which are huge.
And that was not in production in 1970's. Plus fracking of course.
Spider Jerusalem
(21,786 posts)fracking-related methane release is responsible for a significant spike in global temperatures over the past 15 years (methane is around 84x more potent a greenhouse gas than CO2), and most of that comes from the USA. If this means that tight oil production goes into terminal decline, that's actually good news.
Midnight Writer
(21,812 posts)Ronald Reagan put the brakes on that in a hurry.
Think how much better off we would all be if not for the GOP.