03-11-2020, 01:24 PM
** 11-Mar-2020 World View: Growing between Russia and Saudi Arabia
I've heard numerous analysts discuss this situation between Russia
and Saudi Arabia. Some of them say that Russia has the advantage,
others say that the Saudis have the advantage. The only thing that
everyone seems to agree with is that both Russia and Saudi Arabia
want to screw the US shale oil producers, and they seem to be doing
that successfully.
The news today is that both Saudi Arabia and United Arab Emirates
(UAE) are going to substantially produce oil production, in order to
force Russia to come back to the bargaining table, and rejoin the
OPEC+ (= OPEC + Russia). Many people doubt that will work.
Oil prices have been crashing since the beginning of March,
as shown by the following chart:
![[Image: eb482b7beb33b6a0d4068d909f1432db]](https://media.zenfs.com/en/bloomberg_markets_842/eb482b7beb33b6a0d4068d909f1432db)
-- Oil War Escalates Again After Saudi and U.A.E. Promise Flood of
Crude
https://finance.yahoo.com/news/oil-war-e...25389.html
(BB, 11-Mar-2020)
DaKardii Wrote:> As for the Middle East, the coronavirus played a central role in
> the breakdown in negotiations between Saudi Arabia and Russia over
> oil production. Saudi Arabia has responded by dramatically
> increasing its production, causing oil prices to plummet. This has
> created a lose-lose situation for Saudi Arabia. With the virus
> having crippled the global travel industry, global demand for oil
> will fall over the next few months. Saudi Arabia will then be
> stuck with an extremely large oil supply that's not being bought,
> which will drive prices down further. There is zero doubt that
> Saudi Arabia will suffer severe economic losses as a consequence
> of this decision. But that's not the end of it. Saudi Arabia's
> economy was already fragile to begin with, due to the previous oil
> price collapses of 2014-15, and massive debts incurred by its
> proxy wars against Iran. I've already mentioned on multiple
> occasions that the IMF has projected a Saudi bankruptcy by this
> year. And look where we are. The coronavirus may well be the event
> that sparks this bankruptcy.
> A Saudi bankruptcy would cause a severe disruption of the balance
> of power in the Middle East, likely severe enough to spark a major
> war.
I've heard numerous analysts discuss this situation between Russia
and Saudi Arabia. Some of them say that Russia has the advantage,
others say that the Saudis have the advantage. The only thing that
everyone seems to agree with is that both Russia and Saudi Arabia
want to screw the US shale oil producers, and they seem to be doing
that successfully.
The news today is that both Saudi Arabia and United Arab Emirates
(UAE) are going to substantially produce oil production, in order to
force Russia to come back to the bargaining table, and rejoin the
OPEC+ (= OPEC + Russia). Many people doubt that will work.
Oil prices have been crashing since the beginning of March,
as shown by the following chart:
- Oil prices have been crashing since the beginning of March
-- Oil War Escalates Again After Saudi and U.A.E. Promise Flood of
Crude
https://finance.yahoo.com/news/oil-war-e...25389.html
(BB, 11-Mar-2020)
