OPEC DID NOT CUT OUTPUT?
- Thread starter Yappy
- Start date
They got no choice. They cut, Russia and US will up theirs to pick up the slack. Political implication? The ruble has dropped 60%. Plus the sanctions due to Ukraine, oil prices have a big impact on Russia and what it will do. Oil export accounts for 26.5% of Russia's GDP.
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Russia has the missiles to turn the human race into oil deposits. Everyone over here in America seems to think they don't or at least they act that way for the most part. Russia, Iran, N. Korea, China (axis of evil bs) is scrambling to gain new partners and perhaps create another paradigm besides the petro dollar. Dense American politicians and crazy rich richest people in the world OPEC are at it already trying to stop them and take over the world. These sanctions and everything imo are economic warfare. I wish they would quit poking at the bear because he can eat us you know!
Hear hear! And the last thing the US wants to do is to pull out the nukes too. The last thing we all want is a war on a nuclear front
You are right!
Another ploy to down ruble?
Break it up again to much smaller pieces?(They had done it before)
It's all biz.
You know last time during oil price hike and oil in short supply about 5-6 years back?
There were many tankers chartered to carry oil, but after loading were set a drift on the sea by not specifying the cargo destination.
It seems the benefit from price hike minus the time charter cost of the tankers still give them profit.
Even though at that time the Mid East countries promised an increase of production, they just keep chartering the tankers to hold the oil back in the sea, and the world still experience that oil shortage.
Now that the price drop, I can only guess it's still part of their biz game where no gov can control.
You know last time during oil price hike and oil in short supply about 5-6 years back?
There were many tankers chartered to carry oil, but after loading were set a drift on the sea by not specifying the cargo destination.
It seems the benefit from price hike minus the time charter cost of the tankers still give them profit.
Even though at that time the Mid East countries promised an increase of production, they just keep chartering the tankers to hold the oil back in the sea, and the world still experience that oil shortage.
Now that the price drop, I can only guess it's still part of their biz game where no gov can control.
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Try to tickle the bear, let it feels uncomfortable and tell the rest what she can do!
Oil price plunged to US$60 in early hour trade.
Cheap oil...... let see what excuses can the government give for not lowering down the utility charges.
Cheap oil...... let see what excuses can the government give for not lowering down the utility charges.
Just like the petrol companies... when oil prices go up, they will scream "oil prices went up, must up pump prices, no choice."
When oil prices go down, "oil prices is merely a component of the price. Other components matter more."
A rumour is halfway around the world before the truth has got its boots on.
(Terry Pratchett)
Probably all OPEC are trying to do is bankrupt the US Shale oil producers and the Canadian tar sands outfits. Those operations are only profitable with $100 oil. With the current price crash bought on by OPEC not cutting production those 'tight' oil producers are now losing money. The same producers that the US was loudly trumpeting were making them 'self sufficient'.
It also brings into question the expensive deep sea drilling operations too.
If OPEC can wear the low prices for long enough for these expensive operations to fold and lose their investors money, OPEC can then raise their prices again - and investors will be reluctant to invest again in 'tight' oil in case OPEC pulls this stunt again.
It also brings into question the expensive deep sea drilling operations too.
If OPEC can wear the low prices for long enough for these expensive operations to fold and lose their investors money, OPEC can then raise their prices again - and investors will be reluctant to invest again in 'tight' oil in case OPEC pulls this stunt again.
Oil price is heading to $55, then $50, and finally at $45. This oil crisis will last for at least a year in order for the real effect to filter through all the oil companies profitability and balance sheets as well as countries especially oil producing nations. The oil price will only stabilize after the Q1 2015 earning results are out in these oil companies.
The falling oil price not only affecting the oil companies but their related industries such as supporting industries. Once these oil companies cut their capex, others will also be affected. Unemployment will rise as many oil fields will stop production as well a due to cut in capex. R & D will also haltered.
Alternate energy markets will also be affected. With cheap oil, who has incentive to use electric motor or LNG motor vehicles? Therefore, this oil crisis has far more implications that one would think of.
Saudi and its OPEC members will emerge as the winner in 1 year time eventually.
It is a price war. Either US cut production or die. There is no boom in production in OPEC. The oil boom is in US. Therefore, OPEC has no incentive to cut output to benefit others especially US shale oil producers.
US has never been the top producer of oil in the world but suddenly it became one in recent years. Now it has so much oil which makes it self sufficient and can be exported out. In fact, US has cut the oil import from Nigeria to zero.
The falling oil price not only affecting the oil companies but their related industries such as supporting industries. Once these oil companies cut their capex, others will also be affected. Unemployment will rise as many oil fields will stop production as well a due to cut in capex. R & D will also haltered.
Alternate energy markets will also be affected. With cheap oil, who has incentive to use electric motor or LNG motor vehicles? Therefore, this oil crisis has far more implications that one would think of.
Saudi and its OPEC members will emerge as the winner in 1 year time eventually.
It is a price war. Either US cut production or die. There is no boom in production in OPEC. The oil boom is in US. Therefore, OPEC has no incentive to cut output to benefit others especially US shale oil producers.
US has never been the top producer of oil in the world but suddenly it became one in recent years. Now it has so much oil which makes it self sufficient and can be exported out. In fact, US has cut the oil import from Nigeria to zero.
Falling oil price is good but the fall cannot be so drastic. Within 2 months, oil price has collapsed more than 40%. A lot of people are caught unaware. Hence, it caused panic. If the fall is gradual, the market can adjust better to prevent the meltdown.
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