Will Oil Prices Drag Down the Economy?

Comments (5)

  1. St. Buck says:

    Saudi price cuts are aimed to hurt their enemies – ISIS and Iran. The sacrifice backed by USA is also to curb Russian profits. Normally at $80 they cut production to boost prices. But not this time! The squeeze is on ISIS to limit their arms buying power.


  2. Mustosheer says:

    What would happen if all of the sudden Saudis are out of the picture.
    One: Uprising in Shia’s area of Saudi Arabia which creates more than 80 percent of Saudi oil. The area which is in south of Saudi Arabia is know for a lot of unrests.
    Two: U.S. and Iran coalition towards the support of uprising.
    Triggering: ISIS advancements inside Iraq and beyond, later on starting the blaming game on Saudis.
    When oil company’s interests are threatened, they sell their own mothers to be on top again.
    The game has started but the players had hard time to participate. Search on line you find more answers.


    FABITO Reply:

    I remember that on one of the previous oil crisis, shale oil exploration was begun in the US in part because oil prices were very high, but as soon as the US put its house in order and oil prices began to fall, they reached a level where fracking became unprofitable and all shale oil extraction was abandoned.
    Can this happen again?
    On the previous ocasion Arab producers could keep on pumping even with prices low, because their costs were lower and their government’s expenditures were more modest. You mention that their break-even costs are very high now, but isn’t that the consequences of wanting to impress themselves first and others afterwards that they have a highly rich country?
    They will have to lower their expectations and wait for production to drop again so that it levels with demand and then they will be alright. They can do this, because they have low populations and lower still need for oil or gas and absolute rulers.
    Any way you consider it, the us will have to keep on looking for lower consumption and different sources of energy. Anything else is temporary.


  3. Steveafrikaner says:

    The Saudi’s are playing a very dangerous game. If oil export regulations in the US are loosened or abolished, this will be a whole new ball game! The main losers will be Saudi Arabia, Iran, and the extinction of Venezuela. Russia will definitely suffer if the oil price drops to $80/barrel. Hold on to your hats, folks.


  4. P Wincett says:

    “The price bottom should occur between $70 and $85 per barrel.”

    How’s that workin’ out for ya?


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