‘Panic’ Grips Mideast Markets. Shares Dive Most Since Financial Crisis. Aramco Crashes

‘Panic’ Grips Mideast Markets. Shares Dive Most Since Financial Crisis. Aramco Crashes

The bottom fell out for Mideast shares after Saudi Arabia fired the opening shots in an oil price war. Every major gauge in the region suffered large declines after Aramco slashed official selling prices for April just a day after talks between OPEC and Russia collapsed in Vienna, marking the end of the alliance between Riyadh and Moscow credited with keeping prices stable. Now, the market is staring down a demand shock from the coronavirus and a supply shock. Some have suggested oil could tum
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4 thoughts on “‘Panic’ Grips Mideast Markets. Shares Dive Most Since Financial Crisis. Aramco Crashes

  1. We are in the midst of WW III.
    Instead of taking over land for economic gain, countries are putting all efforts to take over markets ( oil, pharmaceuticals, technology, manufacturing etc).
    China has been “silently” doing this for decades, Russia not so silently.
    Ever read the “Art of War” by Sun Tsu?

  2. Speaking of sneaky war, doesn’t it seem like the Saudis are a little over-enthusiastic in their “war” against Russia? Their first action of europe-directed price cuts looks like very public confirmation this is a russia dispute, but the real body blow (hiking output to as much as 11m bpd) will be a coupe de grace for US shale, who, let’s face it, have been the real problem child in oil. The Russia dispute looks like maskirovka to me, Godzilla and Mothra pretending to fight while making sure that Tokyo is thoroughly laid to waste. Russia doesn’t need to hide the fact they’re attacking US shale, but the Saudis do. Covid’s demand shock changes the calculation by increasing the reward (oil price collapses even further) while reducing the risk (oil was depressed anyway, why not take a swipe at shale now and get it over with?) MBS would absolutely not be shy about letting Aramco sp collapse near-term in service of the longer-term “good”.

  3. I can tell you one thing about Texas, having lived here for many years. Here, you’ll run across many stories of people who put all of their money on the table and make one roll of the dice. The rewards can be very high, if they’re lucky high rollers.

    When oil prices are up, the high rollers are everywhere.

    But when oil prices are down for any extended period of time, the high rollers always start mailing in the keys to their house to the bank, and high-tail it outta town before anyone knows what’s going on; leaving everybody else with their pants down around their ankles.

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