Posted on 03/10/2020 4:25:20 PM PDT by CheshireTheCat
Global oil demand was already in the doldrums amid widespread restrictions on trade and travel in the wake of the novel coronavirus outbreak
But Russia balked at oil production cuts, the Saudis slashed prices in retaliation and global markets went into a tailspin on Monday
(Excerpt) Read more at scmp.com ...
I think your right .
Very good perception excellent as a matter of fact!!!
MBS is getting ready for the next phase: Iran is decimated, the US is distracted, and they can flex their muscles in the ME.
“I wonder if the Saudis aren’t just trying to finish off Iran while it is in a weakened state.”
If that is their plan their actions have been creating a lot of collateral damage in world stock markets.
While the world - Russia, China, Japan, Saudi Arabia and others use trade an economic weapon, all the western elites can do is yell “free trade”, “free trade”, “free trade”, especially when the U.S. finally retaliates with its own “nationalist” trade policies.
Meanwhile if you look at the EU’s inter-EU trade arrangements and the extensions of those agreements into trade agreements the EU has made with non-EU countries, what you see is a huge amount or protectionism for those within the EU, of an amount that the U.S. elites are always saying the U.S. should not do.
You can argue about any number of “Trump” things, but one thing he has not been about trade is blind to what the western elites preach versus what the real world does.
Mohammed bin Salman
I read the entire article. The question was never answered.
That would be logical.
That’s kinda what I thought.
These Saudis screwing up things around the world. Tanking markets, funding anti-fracking movements, funding Wahabbist mosques all over America, funding 9/11, creating ISIS to create more Sunni theocracies.
Someday, some nation might get it’s backbone back and notice that they have a very weak sister military, and then decide to just take the oil and their assets in that nation.
Nope, it’s the Torona virus that Trump created in the WH basement.
That is why he plays golf, because it makes Putin look like he is smarter than Trump.
But Joe Biden is gonna show him in November because everyone wants to tax the rich and Trump has way more $$$ than the dog-faced pony... uhh, you know the thing.
.
Trying to bankrupt frackers?
There will be no winners here. especially KSA, they need oil at at least $50 and more like $70 or $80 to make it all work. $100 a barrel would be ideal. They will be eating into their capital reserves trying to stay afloat and will be forced to sell more of Aramco to raise cash. at a lower price.
Iran will see this as an act of war. Incoming on Saudi oil wells, storage, tankers and pipelines in 3,2,1
An Immature Idiot!!!!!!!!!!!
It’s also a massive fiscal stimulus. Oil prices went from ~$45 to ~$37, about 20%. The annual US oil consumption bill just went from ~$300b to ~$240b. It’s as if American consumers and manufacturers collectively got $60b more in their pockets per year. For some perspective, the payroll tax cut is estimated to cost $150b a year. If oil prices went to $25, that would represent a $180b annual stimulus.
And trying to leverage the Russians out of Syria. They still want that pipeline to Europe and the Russians still want to block it.
A related topic not being discussed...
Saudi Arabia sold a small percentage of its national oil company - Aramco - in December 2019.
I know Aramco trades on the Saudi exchange, but I don’t know if it trades anywhere else using “depository receipts.”
Although the Saudis sold just 1.5% of the company, that share sold for almost $30 billion, because it is the largest and most profitable company in the world.
Aramco stock reached a high of 38 (riyals?) a few days after its IPO.
Yesterday, the price crashed to 28.
It recovered today to 31 (with Saudi market manipulation??).
The investors must be furious about this Saudi-sponsored price war just three months after the IPO!
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