LAUNCESTON, Australia - Saudi Arabia has detonated a metaphorical nuclear weapon in the global oil market, blowing up prices and trade relationships with its decision to slash the cost of its own crude while ramping up output.
Given its current output is around 9.7 million bpd, this means as much as an extra 1.3 million bpd could flood the market next month - just as demand is taking a major hit from the economic fallout of the global coronavirus epidemic. The OSP for Saudi Aramco’s benchmark Arab Light grade was cut by $6 a barrel for Asian customers, the destination of about two-thirds of the kingdom’s exports. This was the largest monthly cut in Refinitiv records stretching back to 2003.
But there was nothing subtle in the eventual Saudi actions - the largest cut to the OSP in at least three decades and a threat to deluge an already swamped oil market.
قبل هذه الضربة وتكسير العظم تم عمل صندوق تحوط سيادي تلريوني فالنفس طويل والهدف يستحق
Any country trying to impose its hegemony on the Saudi oil market will tell it that the price of oil is in its hands, we are the ones who raise the price and we are the ones who lower it
This is the largest cut to the OSP in at least three decades? MBS price cuts, will shut down USA drilling! Why? It will be a waste of money for Trump's boys to drill. USA producers can't match MBS They will be forced to stop drilling. BidenBooker2020 Trump is out of da house.
Artificial scarcity is immoral. They've come to Jesus.
Who will withstand the bone fracture war. we have a mountain stock of gold that has not been used yet.
chigrl
US Energy com. Victims
this move by the Saudi's will cripple the Russian economy. there's no way they're doing this on their own and no doubt it's being orchestrated by Trump. He seems to have an insatiable desire to inflict pain on Russia.
What, not another social justice story