Saudi announces oil war. Massive price cuts and more production coming

Oilfield workers are not gonna be happy. Lot of jacked up trucks about to go on the market.

 

****ing saudis at it again

 

Nothing says spring like Arab Light and fresh lime.

 

Price cut= cheaper price??

 

Are they at war with themselves? I saw gas for under $2. I can’t remember the last time that happened?

 

i hope we win the war

 

This is why I don't have the stomach to work in O&G and I respect those who do. One day your company is giving you a raise, the next they are giving you the can.

 

Sort of. With corona causing demand to drop, OPEC+ (the + is Russia) wanted to cut production to stabilize prices. Russia's position is basically that they don't want to cut production unless US shale oil shares the misery so Russia refused, which was tanking prices. So Saudi has decided to completely crater prices even more to screw over Russia and try to get them to come to the table and have everyone make cuts together. Saudi can keep pumping more oil, so whatever the lose in margin, they can try to make back in volume.

 

I feel so bad for their citizens. Imagine having that much easy wealth sitting underneath you, pumping it out at a profit for half a century and the country is still the way it is now. Jesus.

 

Who are they trying to win against? Iran? Russia? US Shale?

 

Their government is funded by oil. If they don't start paying off people mbs might get offed.

 

Yup. Oil and stock futures tanking hard. I got a text alert saying it was down 30% and had to do a double-take. And now North Korea is firing their rockets again.

 

Time to buy an Escalade with oversized black wheels.

 

This would be a good time to buy oil. Realistically Saudi and Russia can't afford for oil to be at these prices for long, and worldwide oil demand over the long term is not going down.

 

Russia can't, but Saudi can if they can gobble up market share. They have the lowest production costs by far and can put immense pressure on everyone else.