This includes for those people who were sufficiently trusting of MbS to buy shares in Aramco’s recent IPO. Kalifornistan, CO2, clueless politicians, climate hustle, Tesla Model 3 Is September's Top Selling Car of All Vehicles in Switzerland, Oil Market Eyes Pressure from Tropics and Saudi Arabia, Permian in for Prosperous and Bright Future. China’s efforts to curb the coronavirus outbreak has disrupted the world’s second-largest economy and cut shipments to the biggest oil importer. Major banks also have cut their demand growth forecasts. Moreover, at the weekend, Aramco posted figures showing a 21 per cent fall in 2019 ‘due to a drop in oil prices’ – and this is before the new price-crashing strategy was put in place by MbS! Matters grew worse with the murder of dissident Saudi journalist, Jamal Khashoggi, on 2 October 2018 at the Saudi consulate in Istanbul, Turkey, which even the CIA concluded was personally ordered by MbS. Moscow had refused to support the Organization of the Petroleum Exporting Countries in making a deeper oil cut to cope with the substantial fall in demand caused by the impact of coronavirus on travel and economic activity.

So Russia, with Saudi Arabia either in the oil price war or better still bankrupt, benefits either way. Saudi Arabia would push for production cuts, Russia would resist, then agree at the last minute to curb output with the hope of boosting prices. The contract fell by as much as 31% earlier in the day to $31.02, its lowest since Feb. 12, 2016. fell $10.15, or 24.6%, to settle at $31.13 a barrel. In practical terms this means that if, in fact, it takes longer than originally thought by Russia for Saudi to go bankrupt and it starts to have any negative impact on Russia, then Moscow will just click its fingers together and Riyadh will come running to sign a new OPEC+ output cap deal. Whichever way the oil price war pans out, Russia wins. Our Standards: The Thomson Reuters Trust Principles.

Norway’s Oil & Gas Strikes Could Take 25% Of Production Offline, Simon Watkins is a former senior FX trader and salesman, financial journalist, and best-selling author. It is much more expensive and difficult to pump the oil in the middle of Siberian tundra into a thousand kilometer pipe. But surely, some may say, Saudi stands no chance of going bankrupt? About... half the stuff in this article simply is not true. If they stop bribing the population there could be a revolution in SA against the royal family. Crude prices suffered their biggest daily rout since the 1991 Gulf War on Monday as top producers Saudi Arabia and Russia began a price war that threatens to overwhelm global oil markets with supply.

The budget shortfall based on oil price is a fact. It had to do with the fact that the crown prince was insisting against all evidence to the contrary that Aramco was worth 2 trillion US dollars, when its actual, real world worth was more like 800 billion US dollars. Saudi Arabia, Russia and other major producers last battled for market share in 2014 in a bid to put a squeeze on production from the United States, which has not joined any output limiting pacts and is now the world’s biggest producer of crude thanks to a rapid rise in output from the shale sector. Bank of America reduced its Brent crude price forecast to $45 a barrel in 2020 from $54 a barrel. We will not share your email address.You can unsubscribe at any time. Oil prices suffered an historic collapse overnight after Saudi Arabia shocked the market by launching a price war against onetime ally Russia.

The extent of the Saudi government’s involvement in funding such terrorism appeared front and centre following the overriding on 28 September 2017 by the U.S Congress of former President Barack Obama’s veto of the Justice Against Sponsors of Terrorism Act. Two weeks later and nearly 4 … He was Head of Forex Institutional Sales and Trading for…. The timeframe has halved for a variety of reasons outlined in my recent piece on this very subject here. Other countries in that group are likely to raise supply and cut prices to compete, adding to a market already awash with crude. All of these countries have vast oil and gas reserves and/or useful coastlines for Russian military and commercial needs (Mediterranean access or access to the Arabian Sea). Aramco rejected at least three Asian refiners’ (one Korean, one Taiwanese, and one Chinese) requests for additional crude for April, on top of their long-term supply deal. Receive our cutting-edge 3-part investor education series for FREE. I guess if one doesn't notice that Russia started shielding it's economy from the US controlled financial system by: Why no mention of the total destruction of the shale industry in the US? 5 charts that explain the Saudi Arabia-Russia oil price war so far Published Wed, Apr 1 2020 2:57 AM EDT Updated Wed, Apr 1 2020 7:25 AM EDT Abigail Ng @abigailngwy Related: Russia Needs Higher Oil Prices, But Won't Surrender.

What is even more impressive is that he has managed to do it without mentioning the elephant in the room which is the US attempts to block Russia from selling its energy products around the world.

Chevron’s shares fell more than 15%, the biggest loss since the October 1987 “Black Monday” market crash. OPEC, Russia and other producers had cooperated for three years to restrain supply in a group known as OPEC+. Russia can produce over 11 million barrels per day (mbpd) of oil without figuratively breaking sweat; Saudi’s average from 1973 to right now is just over 8 mbpd. That email address is already in the database.

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