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Why Did Saudi Arabia Start an Oil Price War?
This Week In Asia ^ | March 10, 2020 | Meaghan Tobin

Posted on 03/10/2020 4:25:20 PM PDT by CheshireTheCat

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To: CheshireTheCat

No, this is much bigger. Im not the one to explain all of this as this is an area I don’t understand as well as I should and there are others around here that understand such things much better.

Its important to understand that MBS is pro-American and much of the round ups and incarcerations and similar activity in SA has been about MBS cleaning up his own Anti-American swamp.

Just as there were many events preceeding WWII that should have told anyone paying attention that the bullets were about to begin flying there are things afoot now that add up to a lot more than the disjointed way the media presents them suggests.

There is a reason that Trump has been talking about taking on the Fed and moving to another currency, possibly a hard currency.

This in part is due to the fact that the American Petro-dollar as the worlds reserve currency is dead, we just haven’t buried it yet. China and Russia, along with Iran and a few other players, have embarked on a trade plan that builds a whole new infrastructure through Asia, Europe, and Africa and demands that all payments are in Rubles and Yuan. The dollar will no longer be the worlds reserve currency and effectively retain no value. The way it stands we are effectively trading bits of American debt backed by Chinese credit.

Im sure the plants on this board will get hysterical and have a great deal to say about these things but you don’t have to believe me and you certainly shouldnt believe our experts either. Search for yourself. Try “russia china petroleum trade dollar”. Try “One Belt One Road” or “China New Silk Road” and “21st Century Maritime Silk Road”. Now look at the maps. Theres a reason that the Bidens, Romneys, Pelosis, and Kerrys hate Trump (McCain was always a traitor). Take a look at the routes that these take and where do they nearly intersect with Russian gas lines. Look where Russias port is. Why is Venice so damned important and what does that have to do with Chinese running around Milan? Try “trump announces gold backed currency”.

Americans through open trade, illegal vice, and taxes paid towards intentionally failed federal budgets are paying for the whole thing. We are funding our own demise and the free traitors are the ones in Chinas/Russias pocket.

Sides are forming up. I don’t know if the Brits realize it yet but what they were actually holding a referendum on was which side they would be on.

Its possible that you are looking at the right tree. The media doesn’t just manipulate with false stories. They also deceive us by intentionally presenting information in a disjointed fashion as though events aren’t connected. Many here cant see the forest for the trees. Tehran is involved in these plans with Russia/China and is a critical hub in the route.

What is MBS doing? I don’t know, Im not in MBS inner circle. I would guess that this could be an effort to collapse Iran in the hopes that the people would then reinstall a Western friendly nation which would not only give us an ally in the form of a new Persian nation but cripple Russia/Chinas plan. Maybe bigger and something more but I now that this isn’t just SA getting back at Iran or jabbing their thumb into Irans eye to get back at them for past problems.

If SA is willing to put themselves in this situation, doesn’t it suggest something much more than a bit of revenge?


41 posted on 03/10/2020 6:58:09 PM PDT by gnarledmaw (Hive minded liberals worship leaders, sovereign conservatives elect servants.)
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To: Zhang Fei

All good, and important, points! I was thinking of posting much the same thing — but, you said it all.

All that, and pummeling Iran’s economy too!


42 posted on 03/10/2020 7:36:48 PM PDT by USFRIENDINVICTORIA
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To: CheshireTheCat

Saudi is aware of the huge gas and oil reserves in Russia, They have been trying to slow Russia’s use of these reserves for years. This is just another attempt to keep control of their cash cow by trying to send the cost of Russian oil out of reach financially and keep them at bay. This is not new.

The sell-off in crude began last week when OPEC failed to strike a deal with its allies, led by Russia, about oil production cuts. That, in turn, caused Saudi Arabia to slash its oil prices as it reportedly looks to ramp up production. The shot has been fired over the bow.

rwood


43 posted on 03/10/2020 7:40:36 PM PDT by Redwood71
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To: Captain Peter Blood
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.

Outside of a major war or other crazy situations, oil is probably not going to ever go that high again ($100+). Fracking hits a break-even around $30-50 per bbl. Once it hits $70-80, fracking new wells starts to be worth the cost, and that opens up huge reservoirs in these US. That's likely gonna be the normal day-to-day upper limit on oil prices. And what happens when fracking tech starts spreading into other countries? The ME I don't think has any of the reservoirs that need fracking, But I bet Russia and East Europe do. SA probably as well.
44 posted on 03/10/2020 8:31:16 PM PDT by Svartalfiar
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To: Svartalfiar; Captain Peter Blood
The ME I don't think has any of the reservoirs that need fracking, But I bet Russia and East Europe do. SA probably as well.

So by 'SA' there I mean South America, not Saudi Arabia.
45 posted on 03/10/2020 8:32:12 PM PDT by Svartalfiar
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To: Sequoyah101
MBS probably isn’t even sure himself why he did what he has done now. The young man is off on a power trip I think. He did it in 2014 / 2015 and he is doing the same thing again.

2014/2015 was the attempt to push the frackers out of the oil business. It didn't work because already fracked wells aren't very expensive to run (although not as productive as actively fracking wells), and fracking isn't like Saudi production - fracking can stop and cap, and just re-open the well later. It's an on-off switch.

This time though, seems to be aimed more at Russia, with a probable side bonus of hurting Iran. He knows he can't beat US fracking now, and they aren't gonna be the target anymore.
46 posted on 03/10/2020 8:36:47 PM PDT by Svartalfiar
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To: Captain Peter Blood

Do you suppose there could be a reason SA jumped at Trumps offer to help them get away from being a nation whos economy is based on oil?

Have you considered why a nation like SA would think that a plan like that is a good idea?


47 posted on 03/10/2020 8:53:34 PM PDT by gnarledmaw (Hive minded liberals worship leaders, sovereign conservatives elect servants.)
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To: PROCON; metmom; SkyPilot

I had to grab that image!


48 posted on 03/10/2020 9:10:17 PM PDT by SaveFerris (Luke 17:28 ... as it was in the days of Lot; they did eat, they drank, they bought, they sold ......)
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To: SaveFerris

Beautiful. I can’t even begin to imagine! Watching! Thank you!


49 posted on 03/11/2020 3:58:55 AM PDT by FES0844
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To: Sequoyah101

Have seen a suggestion that MbS has competition for the top spot in SA. Within the prior 7 days another round of arrests, detentions, and shake down of fellow wealthy Saudis occurred.

Perhaps an incipient coup funded by other OPEC member states was in play. The low oil price may throw those countries into chaos, sideline their machinations.


50 posted on 03/11/2020 5:40:19 AM PDT by Ozark Tom
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To: Roman_War_Criminal

Putin and Erdogan, plus an interpreter each, locked within a conference room for three hours. Does diplomacy require earplugs for those guarding the door???


51 posted on 03/11/2020 6:01:50 AM PDT by Ozark Tom
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To: Zhang Fei

Can you say ‘Hewlett-Packard’?


52 posted on 03/11/2020 6:05:25 AM PDT by Ozark Tom
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To: Svartalfiar

Drilling pads now support two to three dozen wells drilled each location. A lot of those wells are capped after initial drilling, awaiting completion at a future date. Fracking is a technique refined by seven decades of advancements- not that large of costs in the picture, as a whole.


53 posted on 03/11/2020 6:19:16 AM PDT by Ozark Tom
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To: FES0844

In the twinkling of an eye...


54 posted on 03/11/2020 8:06:05 AM PDT by SaveFerris (Luke 17:28 ... as it was in the days of Lot; they did eat, they drank, they bought, they sold ......)
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To: Ozark Tom

It occurred to me that if MBS took out a bunch of rivals, there’s then more money to placate those on the fence and reward supporters. “Smaller pie, but you get a wider slice.”


55 posted on 03/11/2020 9:13:06 AM PDT by Paul R. (The Lib / Socialist goal: Total control of nothing left wort h controlling.)
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To: CheshireTheCat

Iran...Russia...and the United States can be seen as enemies of Saudi Arabia.Politically,militarily or economically.


56 posted on 03/11/2020 12:06:53 PM PDT by Gay State Conservative (The Rats Can't Get Over The Fact That They Lost A Rigged Election)
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To: AdmSmith; AnonymousConservative; Arthur Wildfire! March; Berosus; Bockscar; cardinal4; ColdOne; ...
Global oil demand was already in the doldrums... But Russia balked at oil production cuts...
IOW, Russia started the oil price war, unless you're a NeverTrumper, in which case, it was Trump's fracking that caused all the problems since the Fall of Man.

57 posted on 03/11/2020 2:47:22 PM PDT by SunkenCiv (Imagine an imaginary menagerie manager imagining managing an imaginary menagerie.)
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To: Zhang Fei; LS; SunkenCiv; rktman

And THAT dear sir, is why I wonder about the stupidity (deliberate co-thinkning and mindlessness?) of the news media and THEIR “expert sources” on Monday DURING the self-called “oil crisis” causing a Wall Street failure.

ANY reason for lower oil prices will (temporarily) hurt oil company profits, but EVERYBODY ELSE will spend less ion their raw materials (paint, chemicals, plastics, polymers, insulation, installation, travel, shipping, energy, electricity, heating, forming, tooling, ,,,,) and so everybody’s profits rise.

Except those who have invested in shorting oil companies.

So, why did everybody lower prices were causing a crisis on Wall Street?


58 posted on 03/11/2020 6:29:03 PM PDT by Robert A Cook PE (I can only donate monthly, but ABCNNBCBS donates every hour, every night, every day of the year.)
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To: CheshireTheCat

I agree. Note the Dems [joined by the usual suspect Republicans] tried to put the cabosh on the War Powers of the pres, and that the EU is back to busting sanctions on Iran [and is now slapped with a travel ban.]


59 posted on 03/11/2020 8:08:23 PM PDT by piasa (Attitude adjustments offered here free of charge.)
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