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.
Views: 2789
Replies to This Discussion
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Permalink Reply by Bluflame on
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Controlling international production and therefore pricing is futile. This discussion raises legitimate questions. There are many more. Any "deal" would require cooperation of Russia, Iraq, Iran and SA among others. Fat chance! And we don't have sufficient market share to be the controlling entity.
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Permalink Reply by Joseph-Ohio on
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Can't buy into any of the above (among others) as filling the bill / being one of our 'vetted allies' myself.
Don't think they're among those we could trust should things grow even hotter.
JMHOs
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Permalink Reply by David Allen Lilly on
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There may not be any commodity ever that is more manipulated then oil.
OPEC is not the only component but is the biggest thief in the market, or was.
Ever wonder how gasoline just magically goes up the day after a spike in oil prices, all across the state or states, even though the price is for product still in the ground ?
Ever wonder why it is legal for a futures market to add a premium to the price of a product they never actually take possession of ?
If not for American shale we would still be paying in the $3.50-4.50 a dollar range for gasoline and oil would be at $100 a barrel.
That, and a sagging global economy.
Anyway, the market is and always has been manipulated through collusion. And it will be again as soon as this peeing contest is over.
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Permalink Reply by David Allen Lilly on
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Look at it this way, going back to 2007 we paid an enormous ransom for oil, but nary a scenario ever actually occurred to warrant the rise in prices.
End of oil
Global unrest
Demand out stripping supply
Weak dollar (QEI,II AND III)
None of the market conditions ever really warranted the theft of our oil dollars, but what it did was enable the shale revolution which needed high prices to pay for the industry to get a toehold in the market.
In a way it is sweet justice for an industry that operated in a lawless manner, colluding and manipulating prices ever higher until they created the industry (shale) which brought them down.
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Permalink Reply by Thomas Wentzler on
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Why not put a tariff on the imported oil of $20-30/bbl and have the proceeds go to without question to some cause that will placate the left like teacher pension funds, new roads..; you pick. It would have to placate the left in order to pass.
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Permalink Reply by Harry E. Rose on
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Tom, You must be a retired teacher. I vote for road improvements myself. That helps everyone.
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Permalink Reply by Thomas Wentzler on
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No, have a chemical company that supplies frac and drilling chemicals.
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Permalink Reply by Harry E. Rose on
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Good for you. For your benefit I say drill drill drill.
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Permalink Reply by Joseph-Ohio on
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Seems to me that Embargos against non-allied foreign production and Trade Agreements with our vetted allies in this should work to the same end but shouldn't work to increase the sell price of our fossil fuels to ourselves (and / or our vetted allies).
Do I have that right ? ?
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