Wednesday, March 18, 2020
Thursday, March 12, 2020
On Saudi Russia oil price standoff.
Oil price wars have happened in the past within the organisation OPEC back in the 80's having members like Saudi Arabia and Venezuela fighting over prices and market shares and also its been argued in many times that the former USSR fell because of a strategy from Saudi Arabia to drain the markets to crash prices.
Now the added element is a pandemic like the COVID19 which i dont think has joined any turbulence in oil markets especially with q protracted low demand, a long called recession for this year and a glut market of over production and reduced demand since long only coming from China and India while the US has been becoming relatively self reliant on its oil production.
Hence it will all depend on the willingness of the players like Russia, Saudi Arabia and the U.S. to calm the markets and stabilise the oil prices since in the end it will impact consumers as well as producers in all producing and exporting countries no matter the low prices of gasoline in consuming countries.
Then there is an unfolding prices discounts confrontation between KSA and Russia regarding cargoes to Asia and now to Europe testing the long term feasibility of exports of oil and gas from the U.S. Indeed turbulent times in oil markets.
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