"Oh great Sultan, it's been two days since you've fed the people after the price of oil crashed, and we have visitors..."
Bring it! Let’s see what happens.
For the love of Noah Webster; one is scared BY or AFRAID of.
The Oil bloodbath continues in less than one hour from now, and all indications are that it will slide even further.
18% of all “High-Yield” US Bonds are in Oil companies and oil exploration.
“the market will stabilize itself.”
He put down is copy of Mein Kompfe and said, “Hayek! Oh she’s pretty! Wait. This isn’t about Salma, but it’s interesting.”
"Oh great Sultan, it's been two days since you've fed the people after the price of oil crashed, and we have visitors..."
Significant oil price drops bring out the animus and weapons, at least for threats. Every member has a jealously guarded secret about what their internal economies need the commodity price to be at. Unfortunately, that secret is almost as open as the sky because most OPEC countries have a history or are currently working with the major international oil producing companies (Shell, Total, BP, Exxon etc.) and they KNOW their costs and the host country's pricing.
Saudi Arabia has the dominant hand here as it is controlled by a single family, Ibn Sau'ud, and their enormous reserves cost far less to tap than anybody else! This oil price down spiral will only end when they curtail their production. That will only happen when IRAN and ISIS are humbled and if Russia, Venezuela and others are hurt, its a hard world and they'll smile behind their hands.
Some US drillers are already going bankrupt and that is a shame, but it has happened before and will happen again. I recall a joke from the 90s that may be making the rounds again if this trend keeps up. What is the difference between a seagull and an oil engineer? A seagull can still make a deposit on a BMW!
If OPEC doesn’t reduce production prices will drop further and benefit consumers.
If OPEC does reduce production they’ll be the ones missing out on the revenue and the non-OPEC nations will most likely make up the slack and enjoy slightly higher per-barrel revenues while still getting cheap oil and gas to consumers.
Either way, I’m good with low fuel prices. And if low prices are combined with more domestic production and fewer dollars shipped to muzzie countries, that’s a bonus.
Not to worry folks;
Once they drive out all those new upstart American oil companies that have been doing well for the last couple of years, prices will go up.
Of course our masters in Washington conspire with them to do the same thing.