The outlook for Saudi Arabia is getting worse economically

http://www.bbc.com/news/business-35188807

The pressure on the Saudi royal family is growing, the oil price crash that they are attributed with causing is taking a continued and more brutal toll.

Petro economies are being crushed everywhere, this cannot continue and it wont.

I believe that there has to be a reformation of an alliance that will restrict production thus raising prices, especially if the American shale oil companies can be counted on to join in.

Everybody is bleeding profusely and it appears to no benefit to anyone. Massive amounts of wealth are being squandered and that is unlikely to continue for more than another year or so.

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Permalink Reply by Joseph-Ohio on December 31, 2015 at 3:46am

Apply more pressure on SA to play ball.

Not acting like allies at all.

Sanctions. 

Embargo their production to the Americas / Vetted Allies. Better still embargo ALL their production being shipped overseas.

We (and they're supposed to be our allies) are on a war footing.

If they're not with us - well......I'll let you guess where I think they are.

JMHOs

Permalink Reply by Jim Litwinowicz on January 1, 2016 at 5:06pm

Better still embargo ALL their production being shipped overseas.

You do know it was an oil embargo against Japan that caused them to bomb Pearl Harbor?

(It was stopping them from importing vital oil but exporting oil is just as vital to SA)

Permalink Reply by Joseph-Ohio on January 2, 2016 at 2:24am
It was their treachery and their aspirations to create a despotic empire that drove them to ignite war with the USA as I see it.

Your reply is like saying resisting oppression causes war.

I don't see it that way myself.
Permalink Reply by WMP on January 4, 2016 at 6:10am

It was a little more complex than that.  Japan had a raw material problem, and the US also cut off scrap metal sales.  Yamamoto was right though, they screwed with a sleeping giant and it caught up with them.  Time to wake up again.

Permalink Reply by Joseph-Ohio on January 4, 2016 at 6:55am

Complex you write.

I think things like World Wars generally are.

But let's call what they did what it was - treachery.

Anyway they did what they did and we didn't like it and then we did what we did.

Good luck to all of us.

Permalink Reply by Gregory J Adams on January 5, 2016 at 4:19am

We cut them off because the Empire was engaged in taking china and harassing other neighbors.

https://en.wikipedia.org/wiki/Nanking_Massacre

Seems like the least we could do.

Permalink Reply by Philip Brutz on January 1, 2016 at 10:22am

Cartels are not legal in the United States.  How would the American shale companies join in? 

Permalink Reply by Joseph-Ohio on January 1, 2016 at 11:34am

By legislation / law and the 'shale companies' adhereing to it.

Trade Agreements among vetted allies (especially during 'war time') if they are illegal in our country should not be to my way of looking at things.

Why is it OK to trade with a 'Cartel' (O.P.E.C.) if 'Cartels' are illegal ?

Are we at 'war' or not ?

It's no good saying we are at 'war' only when it's the 'politically correct' thing to say. Too much speaking out of both sides of the mouth going on these days. Look at Natural Gas & Oil Lease Language for a grand example.

Embargos against trade with non-allied foreign countries (in this case Natural Gas and Oil) should not be illegal either.

Commerce with Cuba and the U.S.A. was stopped for decades - personally I don't know why that no-trade arrangement was lifted at this time either. Was that just parts of it or all of it ?

Can't call adherance to law written in the interest of the U.S.A. illegal by calling it a Trade Agreement among vetted allies a 'Cartel' the way I see it.

Circumventing the 'Spirit' of Laws, Codes, Ordinances, etc. is what would be illegal as I see it intuitively.

JMHOs

Permalink Reply by Philip Brutz on January 1, 2016 at 11:54am

Would you support the repeal of the "Sherman antitrust" act?

Permalink Reply by Joseph-Ohio on January 1, 2016 at 12:06pm
I don't know.

Never read it.

However, since you bring it up, I take it it's somehow pertinent / relative to our conversation Philip.

Does current / prevailing law check my points ?

How can intuitive / common sense be made illegal ?

Remember we're speaking to 'Trade Agreements' between vetted allies and Embargo / Sanctions against non-allies.
Permalink Reply by Philip Brutz on January 1, 2016 at 12:18pm

https://en.wikipedia.org/wiki/Sherman_Antitrust_Act

Price fixing is a conspiracy between business competitors to set their prices to buy or sell goods or services at a certain price point. This benefits all businesses or individuals that are on the same side of the market and involved in the conspiracy, as prices are either set high, stabilized, discounted, or fixed.

How Price Fixing Violates the Law

Price fixing violates state and federal competition laws, which prohibits businesses collusion. Business collusion is an agreement between businesses that fraudulently prevents other businesses from being able to compete in the open market. Price fixing violates competition law because it controls the market price or the supply and demand of a good or service. This prohibits other businesses from being able to compete against the businesses in the price fixing agreement, which prevents the public from being able to expect the benefits of free competition. This violation can be implied or express, with minimal evidence needed to prosecute.

Even if there is evidence that competitors have appeared to agree on a price, this can lead to a collusion charge. Price fixing can be prosecuted federally as a criminal violation under the Sherman Antitrust Act or a civil violation under the Federal Trade Commission. Price fixing can also be prosecuted under state antitrust laws.

How Price Fixing Happens

Price fixing can happen several ways. Businesses can agree to set their prices high, so that consumers have no choice but to buy at the high price. They can also agree to set mark-ups, sales, surcharges or discounts on goods or services at the same rate. Businesses can also agree to set their maximum purchasing price so that a seller of a product, service or commodity will be forced to sell at the set price. Price fixing can also happen in the credit market, where companies agree to standardize credit terms to consumers. Many states have “below sales-cost laws,” which prohibit businesses from selling goods or services below market cost, if their intent is anti-competitive.



Read more: http://business-law.freeadvice.com/business-law/trade_regulation/pr... 

Permalink Reply by Joseph-Ohio on January 1, 2016 at 12:39pm
Like SA / OPEC fixes the price of a barrel of oil from the supply side by minimizing or maximizing their production / contribution to the world's oil supply (depending on how they want to affect pricing) ?

How is that not 'price fixing' on a global scale.

Also, they (SA & OPEC) don't have to follow the USA's laws do they ?

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