Oil Price War

[benld74]

So with Saudi going to over pump and drop $$ on barrel, Russia may do the same. Price wars.
What is affected?
Who is hurt the most?
Who is hurt the least?

Why is it being done?
Is there a reason?
Coordinated? Planned?

[Frasier Balzov]

1. It is done to make American drilling unprofitable.

So domestic extraction gets mothballed.

So the Saudis can price gouge again.

Same as it ever was.

[Under The Radar]

6. Steel prices drop, airline and freight companies profit, most commodities follow oil.

[Roland99]

2. A good twitter thread on this...

Link to tweet

[mr_lebowski]

3. I don't know why KSA would be doing that right now ... corner market share maybe?

Real low oil prices will fuck all the oil companies that are heavily invested in fracking, force a lot of layoffs and production downturns. That much is for sure. I think they start losing money at <$US40-50/bbl depending on the specific play.

[global1]

4. Does This Give Trump An Excuse To Blame A Down Market On?....nt

[kurtcagle]

5. That will backfire.

Oil demand has been dropping even before Covid19. Since then I've seen a 25% drop in traffic here in Seattle amidst an upswing of eVs purchased. The US has also been topping up the strategic reserves, assuming Trump hasn't redirected THAT to his damn wall as well.

Other point. China has significantly boosted West African offshore production, in part to be largely independent of both Russia and the Middle East bottleneck. SA and Russia are assuming a fast recovery, but they may end up going broke themselves before the market recovers. It's what broke the Soviet Union in the first place.

[BigmanPigman]

7. I read these 2 articles posted on DU earlier.

They helped this nimrod understand it (sort of).

https://www.bloomberg.com/news/articles/2020-03-08/oil-in-freefall-after-saudis-slash-prices-in-all-out-crude-war

https://www.forbes.com/sites/rrapier/2020/03/08/what-was-russia-thinking-in-refusing-to-cut-oil-production/