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Oil Dives 30% In Jaw-Dropping Move Following Saudi Price War Declaration
As expected, oil plunged to start the new week, after Saudi Arabia effectively declared a price war on Saturday with deep, across-the-board OSP cuts aimed at punishing Russia for Moscow's refusal to acquiesce to production cuts in Vienna.
The market is now staring down both an acute demand shock from the containment measures associated with the global fight to stop the spread of the coronavirus, and a supply shock. Riyadh is reportedly preparing to ramp production starting next month, when the
Sounds like time to buy refiners and wholesalers, since I’ll never see it at the pump.
Everybody’s goin’ away
Said they’re movin’ to LA
There’s not a soul I know around
Everybody’s leavin’ town
Some caught a freight, some caught a plane
Find the sunshine, leave the rain
They said this town’s a waste of time
I guess they’re right, it’s wastin’ mine
Some gotta win, some gotta lose
OIL PATCH WORKER’s got the blues
Tomorrow is going to be very, very ugly.
Dow futures down 1000+, circuit breakers look likely at some point! Cannot wait to hear kudlow!
I need to get a little more panicked about this. It seems that the Russians want to teach US shale producers a lesson, regardless of whether the Saudis want to play ball. So the Saudis want to teach the Russians that the Saudis can absorb more pain than the Russians. Aren’t the Saudis right? All wars are costly. But won’t it become apparent that the Saudis have the upper hand? And when that happens, won’t the Russians agree to a new deal? The price war might go on forever, but I think it is more likely a question of when it will end. But by the end of the week, the markets may price it as a permanent condition.
Best outcome? Peak oil. Ridiculous that the world has made itself hostage to these thugs and authoritarians. The planet is on fire and the only thing these idiots are interested in is making money and playing games. Time to throw the bums out. Trump, Putin, the Sauds, ExxonMobil, BP, Royal Dutch Shell, Total, Eni, Pemex, etc. A plague on their houses.
sounds like the little boy who cried wolf wasn’t kidding…….LOL
I want to know where and to whom I send my routing info to get my anticipated helicopter money. I didn’t get any the last two times. I really do need a new refrigerator, the Kelvinator doesn’t make ice any more.
Actually helicopter money is a good idea. Essentially, we need to pay people to stay home, take care of the kids so the schools can close. $600, like Bush did in ’08, would be a great place to start.