Saudi starts an oil price war, OPEC in shambles

[philip964]

https://www.zerohedge.com/commodities/s ... oil-prices

Oh boy, this and Covid-19 at the same time.

[Chaparral]

This will not be good for Texas. Oil price in free fall, also driving the stock markets down.

[flechero]

they wait until a world wide crisis hits and then manipulate the market, I hope they get theirs in spades. We should price f-16 parts accordingly and anything else they get from us. I bet their wealth would look good on the afghans.

[ELB]

Saudis don’t have F-16s. :)

[flechero]

Saudis don’t have F-16s. :)

My bad, f-15's ( and a number of other US made aircraft)

[Grayling813]

The House of Saud may be surprised that they are no longing dealing with feckless weasels like Obummer. Here’s hoping Trump slaps them so hard they never dare to cross the country that spills blood and treasure to protect theirs.

[03Lightningrocks]

The way I see it is that it is their oil. They can sell it for what ever they want.

[Paladin]

OPEC in shambles is a good thing. OPEC is a cartel which artificially restricts supply. Not good for the drilling industry, but low energy prices are generally good for the overall us economy.

[flechero]

The way I see it is that it is their oil. They can sell it for what ever they want.

While I agree, purposely timing it in a crisis to hurt the rest of the world, for their future gain- is what I have issue with. If they were suddenly cut off from aircraft parts or other weapons, they might think twice about intentionally hurting the rest of the world.

I wish we'd buy all that discounted oil and hold it for when we eventually run out of our own.

[philip964]

Apparently Russia wasn’t playing ball the way they wanted.

So they showed them who was the boss.

I guess.

Will it normalize after the frackers are bankrupt. Probably.

I have always supported a Tarriff on imported oil.

But I have been by my self.

We protect other industries, but consumers love cheap gas prices at the pump.

[Grayling813]

The way I see it is that it is their oil. They can sell it for what ever they want.

They can sell it and build an army, navy, air force and other national defense needs without being subsidized by the American taxpayers. As well, they can pay "full retail" for spare parts, munitions and equipment purchased from the United States.

How many Saudi nationals were involved in the 9/11 attacks? Oh yeah...15 of the 19....I haven't forgotten.

[Papa_Tiger]

The way I see it is that it is their oil. They can sell it for what ever they want.

They can sell it and build an army, navy, air force and other national defense needs without being subsidized by the American taxpayers. As well, they can pay "full retail" for spare parts, munitions and equipment purchased from the United States.

How many Saudi nationals were involved in the 9/11 attacks? Oh yeah...15 of the 19....I haven't forgotten.

But, but, but... We NEED our valued allies in the Middle East!

[Chaparral]

OPEC in shambles is a good thing. OPEC is a cartel which artificially restricts supply. Not good for the drilling industry, but low energy prices are generally good for the overall us economy.

Loss of oil royalties from state lands as well as a decrease in sales tax and other tax revenues will lead to a state budget shortfall. State unemployment will spike, and retail and real estate revenues will take a hit. Not necessarily good for the Texas economy.

Your description of OPEC is accurate, but an interesting historical note is that OPEC was modeled after the Texas Railroad Commission, which limited Texas oil production to support oil prices for much of the early and mid 20th century.

[Paladin]

OPEC in shambles is a good thing. OPEC is a cartel which artificially restricts supply. Not good for the drilling industry, but low energy prices are generally good for the overall us economy.

Loss of oil royalties from state lands as well as a decrease in sales tax and other tax revenues will lead to a state budget shortfall. State unemployment will spike, and retail and real estate revenues will take a hit. Not necessarily good for the Texas economy.

Your description of OPEC is accurate, but an interesting historical note is that OPEC was modeled after the Texas Railroad Commission, which limited Texas oil production to support oil prices for much of the early and mid 20th century.

Yes. This award winning book talks about the Railroad Commission and tons of other really fascinating details:
The Prize: The Epic Quest for Oil, Money & Power