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Saudi-Initiated All-Out Oil War Could Lead To Collapse Of Kingdom Itself

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Saudi-Initiated All-Out Oil War Could Lead To Collapse Of Kingdom Itself

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Saudi Arabia launched an all-out oil war offering unprecedented discounts and flooding the market in an attempt to capture a larger share and defeat other oil producers. This scorched earth approach caused the biggest oil price fall since the war in the Persian Gulf in 1991. On March 9, Brent crude plunged over 28.5% to $32 per barrel, while WTI fell 31.5% to $28.27 a barrel. The crisis erupted as the economic fallout from the coronavirus hysteria continued to reverberate throughout the financial markets.

It all began on March 8 when Riyadh cut its April pricing for crude sales to Asia by $4-$6 a barrel and to the U.S. by $7 a barrel. The Kingdom expanded the discount for its flagship Arab Light crude to refiners in northwest Europe by $8 a barrel offering it at $10.25 a barrel under the Brent benchmark. In comparison, Russia’s Urals crude trades at a discount of about $2 a barrel under Brent. These actions became an attack at the ability of Russia to sell crude in Europe. The Russian ruble immediately plummeted almost 10% falling to its lowest level in more than four years.

Another side that suffered from Saudi actions is Iran. The Islamic country is facing a strong US sanction pressure and often selling its oil via complex schemes and with notable discounts already.

Saudi Arabia is planning to increase its output above 10 million barrel per day. Currently, it pumps 9.7 million barrels per day, but has the capacity to ramp up to 12.5 million barrels per day. According to OPEC and Saudi sources of The Wall Street Journal, Riyadh’s actions are part of an “aggressive campaign” against Moscow.

The formal pretext of this campaign became the inability of the OPEC+ (a meeting of representatives of member states of the Organization of the Petroleum Exporting Countries and non-OPEC members) to extend output agreements.

Saudi Arabia was seeking up to 1.5 million b/d in further oil production cuts, but this proposal was rejected by Russia. Despite the inability to reach the new OPEC+ deal, Saudi Arabia became the only power that took aggressive actions on the market. However, it is hard to imagine that Saudi Arabia would go for such an escalation without at least an order or approval from Washington.

Saudi-Initiated All-Out Oil War Could Lead To Collapse Of Kingdom Itself

Click to see the full-size image

This came amid the detention of two senior members of the Saudi royal family – Prince Ahmed bin Abdulaziz, the younger brother of King Salman, and Mohammed bin Nayef, the king’s nephew – on March 7. This development took place just ahead of the Saudi offensive on the oil market, and was likely a tip of the ongoing undercover struggle between the pro-US and pro-national factions of the Saudi elites; and the pro-US bloc seems to have the upper hand in this conflict.

In this case, the real goal of the Saudi campaign is not only to secure larger share of the oil market and punish Moscow for its unwillingness to accept the proposed OPEC+ deal, but to deliver a powerful blow to Washington’s geopolitical opponents: Russia and Iran. Pro-Western and anti-government forces existing in both Russia and Iran would try to exploit this situation to destabilize the internal situation in the countries.

On the other hand, Saudi Arabia may soon find out that its actions have backfired. Such economic and geopolitical games amid the acute conflict with Iran, military setbacks in Yemen and the increasing regional standoff with the UAE could cost too much for the Kingdom itself.

If the oil prices fall any further and reach $20 per barrel, this will lead to unacceptable economic losses for Russia and Iran, and they could and will likely opt to use nonmarket tools of influencing the Saudi behavior. These options include the increasing support to Yemen’s Houthis (Ansar Allah) with intelligence, weapons, money, and even military advisers, and the resumption of strikes on Saudi oil infrastructure (by the hands of the Houthis for sure).

On top of these, the Saudi leadership may suddenly find that the internal situation in the Kingdom is being worsened by large-scale protests rapidly turning into an open civil conflict.

Saudi-Initiated All-Out Oil War Could Lead To Collapse Of Kingdom Itself

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Such a scenario is no secret for international financial analysts. On March 8, shares of Saudi state oil company Aramco slumped below their initial public offering (IPO) and closed 9.1% lower. On March 9, it continued the fall plunging another 10%.  There appears to be a lack of buyers. The risks are too obvious.

At the same time, the range of possible US actions in support of Saudi Arabia in the event of such an escalation is limited by the ongoing presidential campaign. Earlier, President Donald Trump demonstrated that a US military base could become a target of direct missile strike and Washington will not order a direct military action in response. Taking into account other examples of the US current approach towards non-Israeli allies, Riyadh should not expect any real support from its American allies in this standoff.

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  • John

    Yeah, ah, the author of the article needs to take a deep breath. There are plenty of other factors and points of view to offer a considerable counter balance to the gist of the article. Normally I like SF articles but this one is a no go. Sorry folks, thumbs down on this one.

    • FlorianGeyer

      I agree with you , John.

      The article is one of those with ‘something for everyone’ and I am always dubious about those.

      The argument that the US may be in cahoots with the KSA does not make sense to me, especially in the election year for Trump. If the US shale companies go ‘tits up’ it would damage Trumps base, in my opinion. Trump has also taken personal accolades for the US shale oil production.

      In my opinion, MBS is very unstable and is sniffing too much white powder. As with Captagon fuelled terrorists, such people are unpredictable BUT their decisions are rarely impressive. :)

      The icing on the cake would be a Saudi Arabia in financial and political turmoil , with all the social unrest that would bring.

  • Laurent Parodi

    Oil market represents 5% of russia gdp. Iran oil sails fell last year for about 70 % and iran adapted itself to the new situation.
    On the other hand oil market represents 50% of saoudi arabia gdp. What saoudi arabia is doing is shooting itself in the foot or even the head it depends.

    • Informbiro

      They not,because they can afford it.They can produce more and sell more then others,because their oil is a lot cheaper now.Estimates tell Russia is loosing 200-300 millions a day.

      • Laurent Parodi

        Saoudi arabia will stat losing money too and they will lose much more than russia. Don t forget that saoudi arabia society is based on oil royalties and that they need a lot of money for their war in yemen. Again I think they are shooting themselves in the foot if this situation last.

        • Informbiro

          How do they exactly loose money if they just produce more and sell more?

          • Laurent Parodi

            With oil at 30 $ instead of 65$ they are losing a lot of money. They won t be able to keep up for long. Soudi arabia economy is not diversified at all.

          • FlorianGeyer

            The Saudi Terror exports and the Beheading Business is doing well though. :)

          • BlueHeadLizard

            Saudi Arabia (SA) is like the Soviet Union in the 80’s, only worse. The SA State, which includes the economy as it is a State controlled economy, is funded by oil and gas revenue. The State has grown to such a size; loss making neputism companies, health sector, police, public transport, food+goods imports etc, that it needs an oil price of USD70 to 80- to cover the total Sate + Economy costs. So any price below USD70- means SA is running at a loss.

            Compensating by increasing oil production volume does not work as no one wants to buy more oil; there is so much oil on the surface there is literally nowhere to store it.

          • Vitex

            There never was a shortage. This is I believe the point of Greta Thunberg and other Soros-funded clowns is also to manipulate the market for someone’s benefit. But you can’t eat money, and Saudi will find that out

          • Douglas Houck

            Easy. SA dropped their price 10% last Friday. So if they were selling 9.5 mbd at $60/barrel they were taking in $570 million/day. Raise their pumping 1 mpd to 10.5mbd (unclear if they can acutally do that) at $54/barrel and they now are taking in $567 million/day. The big question is as the market is already over supplied who is going to buy that extra Saudi production? Either someone drops out or everybody lowers their prices. Have to wait and see.

          • igybundy

            Yea thats a great gimmick.. sell a lot more and make higher losses because you are selling at a loss.. But you get a HUGE market cap because you sell so much and then sell shares to keep the business going..

      • Douglas Houck

        I believe the estimate, which was given as a forecast by LUKOIL co-owner Leonid Fedun, was that due to the collapse of the deal, Russia will lose between $100 million to $150 million daily.

        SA needs oil to sell in the $80/barrel range to balance it’s budget. Russia needs oil to be in the $30-$40/barrel range. So who can afford it?

        Yes the oil business is cyclical. Nothing new there.

        • AM Hants

          How will Russia lose? They produce a barrel of oil for a few rubles, excluding transport. They no longer trade in $US unless they have to. They have minimal debt, in control of their vast wealth of natural reserves and can feed, educate and provide free health are to their people.

          How much do Saudi need from a barrel of oil, when you take into accountsoil revenue is needed to support the nation?

          • FlorianGeyer

            Quite right , AM.
            The rouble is allowed to ‘float’ on the currency markets and the consequence of this is that in a fall of the rouble Russian oil is exchanged for an increased number of roubles, so that a shiny new German car for instance would indeed cost a Russian more Roubles to buy it, BUT if the roubles used to buy internally sourced and produced goods, the price would remain the same in Roubles.

            European holidays would cost more etc, but Russia has climates for all tastes and there is no need to travel to a foreign resort and spend money earned in Russia in a foreign land.

      • Lone Ranger

        Thats nothing for Russia.
        They have $560billion in reserves.
        Saudis and U.S. will be hit much harder.

    • JustPassingThrough

      the Sowdies need 85$/b oil to keep their kingdom afloat.
      The Russians don’t.

    • Peter Jennings

      The american’s might do that job for them. The low low price, if it persists, is going to be the death knell for at least half of the US shale oil industry, who were losing the game anyway.

      It’s also going to give all other oil companies involved in extraction the shivers.

      • Pork

        Nope. if US decides to internalize sales of it’s domestic production, thus allowing a leveling of market retail prices, the US can ride this one out.

        That’s the ace in the hole for the US, a market that exceeds its resource output.

        • Mike

          Dream on pork shit, if that where the case why did your markets crashed badly today in Wall Street. Those low oil prices are going to take down your subsidized fracking industry and your fake subsidized economy, you’re fucked Yanks.

          • Pork

            Lol…ok. people talking garbage in order to get their point across ( and you’ve made no point of argument ) are children. I don’t argue with children, I give them candy…you want some candy, hmmm?

        • igybundy

          I would be selling pork brains here… its easy money when stupid is involved.

          • Pork

            Its a proven fact that those that conduct personal attacks instead of being capable of putting together a plausible argument, retort, have a low IQ.

            Child

        • JustPassingThrough

          “internalize sales of it’s domestic production”

          Let’s see:
          1. Porno
          2. F-35
          3. Real Estate that’s been fracked.
          4. Hilary’s colostomy photos.
          5. Gangsta Rap
          6. Fast food recipe books made of edible paper.
          7. D.T.’s twitter rants.
          8. Pompeo’s christian sermons.
          9. Congressional sitcoms.
          10. Boing Boing 737 Max (or is it Min)

          That’s the ace in the hole a**hole for of the US, a consumer market that exceeds its resource income output.

          • Pork

            Funny thing is, all that you’ve mentioned is true and yet, USeptember economy is thriving?!?
            Not one nation wants the US economy to take a dive, not one. And of the enemies the US has made for itself, these nations remain realistic. It’s a one world economy and at the head of it is US. This virus outbreak is going to prove at least one thing, the US can outlast and isolate itself, and by far, be the least hurt.

            The US, if so chooses, can dump the oil market. Within no time the US barrel output can be ramped up to 20 million barrels, damn the cost. Flooding the market and creating long term recession for export oil based economies. It can also ramp up cost by choosing proxy events and other means, as it has, and in so doing feeding the military end of its economy.

            Don’t misunderstand my intentions, my opinion is not for or against, simply observation.
            It’s why I replied to you. Other replying to my comment make it personal, and that’s childish.

          • JustPassingThrough

            …and my opinion is that your observations are a bit skewed.
            don’t take it personally. :)

        • Peter Jennings

          If the US decides anything, it will be their hard landing zone. Also, and mainly due to US abuse, we don’t have a level market because it’s so manipulated, across the board and has been that way for decades. Then again, reality was never a favourite state for wall st.

        • Duc Palatine

          There will be no demand in the US it will be shut down like China within three weeks. Crash buddy crashed US economy coming straight up.

    • FlorianGeyer

      Exactly, and the US sanctions for at least 5 years have created a vibrant internal market for goods and services in Russia. Russia is not dependent on a global supply chain to manufacture the equipment Russia needs.

      • BMWA1

        My trip to Russia this summer just got cheaper!

        • Jens Holm

          As consumers we love it:)

        • Redadmiral

          Old Russian proverb; “Do not spare money for pleasure!” You can now spend more

      • Jens Holm

        Yes, they are. 40 dollar is the estimate for problems for Russia and it seemes lower now. Thats written by many at the internet and in rasio and TV here as well.

        • Duc Palatine

          That’s bollocks and Russia has no massive state loans does not depend on oil and gas it can ride this out in far better shape than any other country.

        • JustPassingThrough

          it all depends who is doing the writing, doesn’t it?

    • Adi

      The top exports of Russia are Crude Petroleum ($96.6B), Refined Petroleum ($58.4B), Petroleum Gas ($19.8B), Coal Briquettes ($16.1B) and Wheat (7.93B)
      Total export: $341B
      So what the fuck are you talking about?

    • Duc Palatine

      Not necessarily, if Saudi can put enough players out the game and shut down their production including Iraq, Kuwait and the big stinky USA and sell enough futures it may come out of it in six months with some committed buyers. Will Russia sell at this price, can they? The Yanks cannot but there are different types of oil and the far east for example like Australia only buys from Malaysia.
      Who knows it could go a multiple of different directions, but as a key ally to the US its the American Permian basin drillers that will suffer the most and at these prices most will go under very fast. It will be the end of the US global oil leadership and start a whole new chain of US intervention in the Mid East to shore up its influence with force, namely Iraq.

      • Jens Holm

        Who are yanks??? USA sel as much oil as they buy now.

        • Mike

          Fuck off retard.

          • Jens Holm

            Facts are USA do produce enough oil themselves. They do import some, but they also export some.

            I no retard bring numbers for it. They have raised home production a lot by thracking. Even dirty is a fact.

            Therefor they are not as dependent in import accoding to the dollar.

          • JustPassingThrough

            they frack the wrong type of oil.

        • Duc Palatine

          The US drillers are all leveraged to the hilt, even a short period with sales at $30 a barrel will wipe out the bonds and take from bbb to junk. Then there’ll be a made race to sell and the bb above will fall into dangerous territory. You end up with a spiral of bankruptcy and default in the US debt market and bang the US become net importors and Trump gets buried. That why he rather bail out his oil buddies than offer free medical care to Americans who get the Coronavirus. It’s shit capitalism at its shittiest.

    • Redadmiral

      Talking about shooting, let’s see how well those Yanki patriots systems fare should the Houthis decide to create a few leaks in RSA oil infrastructure

    • Jens Holm

      None of You knows a things about those things. You have no fact finding, You have not looked at the many saying its very critical for Russia.

      Telling oil is only 5% of the Russian GDP says nothing. Its about export !!!! 121,4 BILLION dollars in 2019 fx goes from that to 100 billion dollars. Thats a big change in a GDP semilar to Spain..

      • JustPassingThrough

        jens, it’s time for your medication.
        you accuse others of no facts and then babble your way through 4 nonsensical posts.
        give it up.

    • Zionism = EVIL

      The “kingdom” is a British and Americunt created pimpdom and simply not sustainable and is already collapsing. Oil revenues account for 90% of Saudi income and 95% of the lazy Bedouin illiterate population lives on some form of state subsidies.

      Russia’s finance ministry said the country is prepared for the price
      slump, with sufficient reserves to cover lost revenue “for six to 10
      years” at oil prices of $US25 to $US30 a barrel. Brent crude, the
      international benchmark, traded at about $US35 on Monday.

  • Douglas Houck

    Where does SF get this nonsense?

    Here is an interesting quote posted in today’s TASS, although I generally shy away from unnamed sources..

    “That is not true. Saudi Arabia does not plan any price wars against Russia. On the contrary, Russia is still a very important partner for Riyadh and a most important player on the energy market,” a high-ranking source said, adding that the OPEC+ mechanism is alive and can work.

    Take a deep breath and watch this play out for a couple of months before believing all the histrionics being posted today.

    • JustPassingThrough

      Throw this in the pot.

      “Crown Prince Mohammed, also referred to as MbS, “accused them of

      conducting contacts with foreign powers, including the Americans and

      others, to carry out a coup d’etat,” the regional source said.”

      https://www.swissinfo.ch/eng/reuters/saudi-arabia-detains-senior-royals-for-alleged-coup-plot–including-king-s-brother—sources/45602454

      • AM Hants

        Trump, Pence and the son-in-law were mentioned, with regards Saudi regime change and family problems.

        • Concrete Mike

          I can understand why the americans are pissed, of course they would try to overthrow MBS if he attempted to crash oil prices, low oil prices is very bad for the frackers stateside. Canadian tar sands ect.
          Its to remove the high extraction cost competition.

          • AM Hants

            Wasn’t it all arranged before Russia yelled No?

            Must admit, I have no problems with Saudi going bankrupt, as can see it providing a calmness in the ME.

            Wonder what they will do with regards the Harrod’s Car Park, over in Knightsbridge?

          • FlorianGeyer

            They could , um, ‘demolish it’ for all I care, AM :)

          • AM Hants

            Fingers crossed. Not a fan of Saudi, for some reason.

          • Vitex

            I hear deafening silence from Israel. Their oil exports would be about useless right now

        • FlorianGeyer

          This year is going to be the ‘ Year of the Popcorn’ I think AM.

          • AM Hants

            Need to play around with a few flavours, only so much popcorn one can digest. Used to have a popcorn maker, but, have a feeling the husband held onto it.

            Actually think a few bottles of wine would suit me better. Seems ages since I last had a decent drink and there is so much to celebrate.

          • FlorianGeyer

            I would join you ,but I abstain from booze :) Never been drunk in my life.

          • AM Hants

            Ah, wish I could say the same haha. Never claimed to have the qualities of a lady haha. Saying that, it only takes one wine spritzer to get me tiddly. Seriously lightweight.

            Both of my sons are virtually tee total, with the younger preferring water to alcohol.

          • BMWA1

            And with Russia cheaper…you should visit!

          • FlorianGeyer

            Yes, I will visit again when I have less commitment here. My horse is too old and spoilt to go into livery for weeks. He has an independent free spirit :)

          • Vitex

            It’s innocent entertainment to smirk while the raghead empire falls down

          • FlorianGeyer

            And the US Cokehead empire with it:)

          • Vitex

            Rumour has it they can’t afford coke anymore and are onto the crystal meth

      • Douglas Houck

        MbS needs to get off Captagon and lower his paranoia.

        • Vitex

          Old “Dustbin” Sultan looks more like a hash smoker :)

  • Informbiro

    Its an US backed OP.If anyone belives Saudies doing this themself is an idiot.All this glorifying of Russian economy and ruble is like telling some jokes.Russian economy looks more like the one from Soviet times lately.All trade is done in former Soviet states and a few outsiders.Those old enough to remember will know what that means.

    • AM Hants

      Remember 2014,when Obama and Saudi tried to manipulate the oil market against Russia.

      They planned it around energy making up 50% of Russian GDP. Ignoring the fact that Russian energy only made up 16% of Ussia’s GDP Budget.

      Russia could produce oil for a few rubles, excluding transport. Production costs in rubles, sales in $US. At the time the US needed oil to be around $80 or was it $60, to break even?

      2014, despite all the sanctions that made Russia stronger, they continued to save, both in gold and currency reserves. Had minimal debt and could feed their people, educate them, including University under graduates, and provide free health are.

      Unlike the world’s largest creditor nation, which now has to work out how to pay off $22 trillion national debt.

      • Lone Ranger

        Bingo.

      • FlorianGeyer

        And the US has 100,000 homeless living on the streets in California alone :)

        • AM Hants

          Holy sh*t, but, hear that is also a problem in California Nd nought to do with the animals. Unless you count the humans haha.

          In Russia, the streets are lined with road cleaners, that the nation can happily afford, unlike Pelosi and Water’s California.

          • FlorianGeyer

            The US has been rotting from within for so long now and the freaks in congress are proof of that, plus a few Rhinos as well.

          • AM Hants

            You look at the figures they receive from their sponsors and so easy to figure why they treat their electorate with contempt.

        • occupybacon

          You always complete each other, there is some chemistry between you too like would be the same person with two accounts :)

      • occupybacon

        In 2014 Russia was 5th at GDP, now it’s under top 10. Lots of wadges were cut back then, Russia joined OPEC in 2016 and formed OPEC+. Now they broke the deal and the crisis will follow. Eventually parts of Siberia will be sold :)

        • AM Hants

          Darling, Russia is not a member of Opec. They are a non-member, but, an important non-member.

          Russia, now didn’t the Russian economy take German’s position. Not forgetting PPP. Do believe Russia’s Purchasing Power Parity is running at 8.5% at the moment, is it not? How does that compare with the EU, 5 Eye Nations, including the US?

          • occupybacon

            Darling, have you seen the roads and the vegetables prices in Siberia? How about beer? Twice as expensive than USA

          • AM Hants

            Darling, have you ever seen a homeless person, surrounded by their own faeces, living in Russia?

            How does the price of Norwegian beer compare to US beer?

            How much of US agriculture originate in the US and arrives GM free?

          • occupybacon

            How much is average life expectation in US and how much in Ru?

          • AM Hants

            Russia increasing, like the birth rates (without Migrant assistance) and the US decreasing.

            Since President Putin took control, the average Russian is expected to live an additional 10 years.

            How many years has the US, UK NATO Member States and ‘5 Eye members’ life expectancy decreased?

          • occupybacon

            From 2000 until now Russian life expectancy increased with 6 years, the same for all ex-communist countries that don’t have Mr President Putin. USA grew only 2 years since then, currently leading Russia with only 2 years. So both our numbers were screwed. But at least I don’t have a tongue in President Putin’s ass.

          • AM Hants

            Would hate to think whose *ss you store your tongue in.

          • occupybacon

            So Putin’s ass is more clean and testy than other asses?

          • AM Hants

            If that is what floats your boat, however, I doubt President Putin would be entertained with you lusting after his anus.

            Type of thing you would expect from a General Harding Troll.

          • occupybacon

            From what I remember his real name was Vladimir Putin not President Putin

          • AM Hants

            Darling, I address him using his title, as the leader of Russia. I could also use Dr Putin, owing to his PhD. Vladimir Putin, is rather an informal way to address a person you do not personally know, is it not?

            He is one of the few World leaders I actually address, using their national titles, as he is one of the few Statesmen I actually respect.

          • occupybacon

            On short you like to lick a dictator’s arse, that’s all :)

          • AM Hants

            General Hardy soundbite of the month?

          • occupybacon

            President Putin demands to pull your tongue out of his ass so he won’t test positive for coronavirus

          • AM Hants

            Wow, what eloquent comments you post. Mummy must be so proud of you.

          • AM Hants

            Get back to your General Harding videos. They obviously suit your intelligence and tastes.

          • occupybacon

            You paid for your cpu to Americans and tell me there are no homeless in Russia

          • occupybacon

            “Darling, have you ever seen a homeless person, surrounded by their own faeces, living in Russia?”

            Really? you don’t believe there is such thing in Russia just because you didn’t see it? Maybe take a better look on photos on https://englishrussia.com/ make a better idea ;)

          • AM Hants

            The people of Russia are far too proud and clean, to sleep amongst their body waste, on the streets of the old and historic nation, even the homeless.

            What is the percentage of homelessness in Russia, compared to the US?

          • occupybacon
          • AM Hants

            Wow, working hard today.

            Is that all you could find from the 11 time zone nation?

          • occupybacon

            You want me to find every Russian beggar for you? Are you feeling horny today?

          • AM Hants

            Zzzzzzzzzzzzzxx

          • Jake321

            There are 10 times as many homeless in Russia as in the US. 3% of the Russian population is homeless. 0.1% of the US population is homeless. Almost 90% of the Russian population would qualify for Food Stamps in California. Russia’s real GDP and typical family income have fallen some one third in the past several years. This oil price war with the Saudis will make it much worse. And to reward himself for this great job, Putz Putin the Poisoner is changing the constitution to make himself in effect Prez for life. Of course, after the Dems win in November that life may be much reduced when the US bankrupts the Putz’s RF with new draconian sanctions.

      • Ivan Freely

        $22 Trillion that we know of. I suspect it’s much higher.

    • Lone Ranger

      BS.
      Russian economy is anything like the Soviet.
      Oil and gas gives less than 9% of the GDP.
      They are capitalistic and are doing business with anybody the U.S. included.
      U.S. and saudi economy resembles mire of the Soviets…

      • Informbiro

        Are you mental dude? You write such shit thats unbelivible. Almost 70% of Russian export is oil and gas.

        • Lone Ranger

          Gives 9% of the Russian GDP.
          Welcome in 2020…

          • Informbiro

            You definitly mental.

          • Lone Ranger

            Indeed you are.

          • Informbiro
          • Lone Ranger

            Moscow times is anti Russian crap…funded by CIA and soros.
            I would rather worry about U.S. shake oil and stockmarket going belly up.
            Its not the Russian economy that is on lifesupport but that of the U.S. with never ending QEs.

          • Informbiro

            You know they have medicine for scizophrenia these days.

          • Lone Ranger

            I know, thats why I dont understand why you aint taking some…

          • Informbiro

            Its pretty obvious you scizophrenic.Every second word of yours is KGB,CIA,Mossad etc…

          • Lone Ranger

            Its you are…
            Time to invest in english lessons Shlomo…

          • Informbiro

            Jebo ti engleski mater u pičku,šizofreničar.

          • JIMI JAMES

            Yes moscow times is very much uneductated low iq variant fake news like abc!

          • Informbiro

            You gay friends you two?

          • occupybacon

            More like 52% in 2019

          • Lone Ranger

            52% of the exports, 9% of the GDP.

          • occupybacon

            Yes, Exports. I will inform myself better about GDP

    • Concrete Mike

      And how.does this help american companies producing oil in america?

      Nice try buddy, im old.enough to know when i see a projection, a pretty poor one at that.

      Crashing oil prices will be very bad for the.domestic producers in america and canada. Were fucked essentially.

      I find it hard to beleive the Trump admin would do that, unless there some dual citizen scum like you advising him some BS.

      • John Wallace

        I agree. The shale producers with billions in debt will crash with thousands losing jobs and associated businesses getting burnt. This happening in a downturn be it conovirus being the pin that pricked the bubble or not sending ripples that will upset the balanced calm.
        The dark clouds are gathering and the distant sound of drums can be heard.

      • occupybacon

        American oil companies can get great loans from the American banks and they have huge internal consume, that’s how they survive crisis. They can survive with less than $20/baril, let’s see if Russian companies can do the same.

        • John Wallace

          With high debt and growing bankruptcies in oil and gas I think it may not be so easy to borrow as you think. The problem here is that eventually loans must be repaid or pushed out to infinity. Bankers are getting tired of pushing loans out, hence the increasing rate of bankruptcy in shale drillers.

          Nearly a month ago, when the main concern on the oil market was the coronavirus outbreak, Moody’s warned that North American E&P firms will face high debt maturities and tighter access to capital over the next few years, with US$86 billion cumulative debt due between 2020 and 2024. Since most of the debt is held by speculative-grade companies, this implies “an elevated level of default risk for the industry,” Moody’s said on February 19.

          On March 9, WTI Crude prices had plummeted to below $30 per barrel. U.S. producers will have a much lower value of their oil and gas resources against which they could borrow more money.

        • John Wallace

          American oil production costs are 22 and slightly more for shale. Russia @ 18 with Saudi and Iran around 9.

  • Pave Way IV

    After the Houthis exterminate the al Saud ruling mafia in Saudi Arabia, the Saudi people will take over THEIR oil wells, production and export. Markets will be stabilized. Houthis never had any ambitions to steal anyone else’s land or oil. They’ll have a nice cup of tea with the new government in Riyadh and then excuse themselves to go back home and defend Yemen from any other foreigners..

    • FlorianGeyer

      The problem with a Free Arabia in the current KSA, could be the US sending ISIS and Al Qaeda supported by the Turks to quell a rebellion against American Democratic Values. :)

      • Pave Way IV

        The Fed’s money printing + stock market Ponzi scheme is falling apart. The CDC completely blew the coronavirus response. CENTCOM will soon be sending ISIS and al Qaeda to the US to quell a rebellion against the US government. I suppose they figure there’s nothing better to pacify a rebellious-minded Joe Sixpack than seeing his neighbor’s head mounted on top of the rotating Wal*Mart sign with an ISIS flag draped over the edge. Those signs are lit up all night – you can see them for miles. Remember, US citizen, only your government can protect you!

        • FlorianGeyer

          American retirement funds are being plundered again, as are all such funds in the West.

          • Ivan Freely

            Interesting comment about raiding pension funds. A part of me wonder if the CoV-19 was meant to thin out the aging population.

          • FlorianGeyer

            Could well be the result, I agree, especially if the Virus comes back next flu season.

      • Ray Douglas

        The more I look at the geopolitical situation I firmly am of the view that China and Russia, with others, have attacked US and their allies with this oil business. Most, if not all, fracking companies are in hock for $billions. They are unable to pay it and will go bankrupt soon. What does that mean for US banks? Disaster, that’s what. As the Chinese might say “May we live in interesting times”

        • FlorianGeyer

          This will also mean lower oil prices for nations without much access to oil for a period of time.

  • JustPassingThrough

    “Russia’s Finance Ministry confirmed Monday it would sell foreign exchange reserves in a bid to stabilize the ruble, adding: “The value of liquid assets of the NWF and funds in the account for additional oil and gas revenues stand at more than 10.1 trillion rubles ($150 billion) or 9.2% of GDP. These funds are sufficient to cover the shortfall in income from falling oil prices to $25-30 per barrel for 6-10 years.
    https://www.themoscowtimes.com/2020/03/09/russian-ruble-plummets-amid-oil-market-chaos-a69562

    As for Rosneft and Gazprom and the Ruble taking a hit, I can’t imagine that they hadn’t been shorted some time before the Russians said “no” to the Sowdies.

    Chess not checkers.

    • AM Hants

      Moscow Times, the Murdoch rag?

      • JustPassingThrough
        • AM Hants

          My pick? Remember 2014.

          Before the sanctions, how Obama and Saudi tried to manipulate the oil market, against Russia.

          How they believed that Russian energy made up 50% of Russian GDP. Only Russian energy made up 16% of the Russian GDP Budget. Russia could produce a barrel of oil For a few rubles. Production costs in rubles, and back in those days, they were selling in $US.

          US, how much did it cost the US to produce a barrel of oil? Was it $80 or $60? How much does it cost Saudi, whose energy sales supports the country, bumping up their oil needs?

          How much was the ruble worth against the $US, back in those days?

          What happened after the US sanctions? Remember how they strengthened Russia. An 11 time zone nation, creditor nation, that can afford to feed it’s people. Provide them with free health are and education, including University Level. Back in 2014, Russia was still increasing their gold and currency reserves, whilst having minimal debt.

          Sadly, the world’s largest debtor nation, could do none of the above, for her people. However, they had no problems increasing the national debt, under any of their President’s, including Trump. Isn’t it true, that the US is using the C Virus crisis to hide the fact they have defaulted on the 16th February payments, for their $22 trillion plus, debt?

          • JustPassingThrough

            “You’re preaching to the choir.” 😸

          • AM Hants

            Something I do a lot. Most of the choir know that I am using them to reach out to those who have not heard the lecture before. Or even those who have heard it time and time again, but, the speed of events, has made it a distant memory.

          • JustPassingThrough

            ” but, the speed of events, has made it a distant memory”
            very well said.
            you cannot lose sight of the forest for a tree.

            if you do then they’ve got you. 😸

      • Vitex

        Good old Rupert “Dual Israeli Citizenship” Murdoch. Wonder if he’s on Adrenochrome like all the other ageing buzzards

        • AM Hants

          Do feel sorry for Jerry, who does appear to like her men wrinkled and rich.

          • Vitex

            She’ll be one of those MK-Ultra style “submissives” eww

  • Lazy Gamer

    Russia now has a motive to bring about the maximum advancement of the Houthis in the shortest time. lol Though, the opposite can be said to the US.

  • Lone Ranger

    Would be time to get rid of those wahabinazis.

  • Wolfgang Wolf

    let the Houthis hit Ras Tanura terminals, and then lets see what happens with die Saudis….

  • AJ

    Saudi pump & dump will hurt US shale far more than Russia, the kingdoms own budget will suffer badly and you have the costly Yemen war.

    • Vitex

      I think the USA are more than likely to react militarily if pushed too hard. But as Florian says above, proxy armies are the style these days

  • good american

    The first thought was someone is going to give the Houthi’s more drones, the second was that the plan for Greater Israel is still on track even if Syria is proving to be an ornery one. Saudi Arabia needs to be broken in two if it is to be realized.

    • Jake321

      And Putz Putin’s RF being bankrupted by this would fracture the residual Russia and send it into the dustbin of history along with the fractured Russian Soviet Empire. They better start to learn Mandarin in Siberia.

      • Lone Ranger

        Russia will do fine.
        Worry instead of the U.S. going belly up…
        Southern states will be probably taken back by Mexico…
        La Raza, Reconquista…

  • Ricky Miller

    It’s a stunt strike. An oil Pearl Harbor, but this price war is a marathon, not a sprint. Russia is signaling a willingness to drive oil prices down into the 20’s/Brent for the foreseeable future, in a targeted effort to punish frackkers in the United States, and the powerful moneymen behind them, all establishment types in American society, whom the political class here actually works for. The total collapse in price will make it hard for the vast amounts of capital sunk into shale production to be recovered, even in small fractions. Saudi Arabia doesn’t have Russia’s more restrained lifestyle and not Russia’s hard currency reserves either. Money that the Saudi’s invest in everything American will have to come home, but that will only delay the inevitable, it won’t stop it. It’s hybrid war, in effect if not intent and the Saudi monarchy will be hard pressed to survive it.

  • Wegan

    MBS is too emotional. This won’t hurt KSM if they stop the cash hemorrhage to terrorist groups. This is also an opportunity to justify tax raises.
    This won’t hurt China because it will help for their recovery.

    This will hurt the US though, big time. They will need to buy oil from KSM because it’s cheaper than theirs if they want to stay competitive. If they do, the whole shale business will collapse unless it’s bailed out or subsidized.

  • DannyC

    Saudi Arabia needs oil at $85 per barrel to balance the budget. Most of its population lives on subsidies. If they can’t afford those, the revolution would begin and the Saudi royal family would be overthrown. Russia is just fine with oil at 20 a barrel. Even if it dipped lower, Russia now is vast gold and currency reserves and almost no foreign debt. It’s a bad move by the Saudis and I don’t think Washington was on board with them crippling the US oil producers in an election season. The US needs oil at about 65 a barrel

  • Dick Von Dast’Ard

    Saudi’s Shia minority could always declare their independence by being part of a new Islamic Republic within a Shia Crescent.

    • Shia man

      I was reading a report on Presstv the shia in Saudi Arabia were besieged this happened yesterday.
      one day when the Shia of hijaz (modern day Saudi Arabia) are free they will take the oil.
      Fun fact The oil fields in Saudi Arabia are Located where the Shia live.

  • Dick Von Dast’Ard
  • Dick Von Dast’Ard
  • Johnny Beaubitch

    Increase in oil production in woman king Saouda. Ansarallah action? to lower oil production. Saudi Arabia a lot of dollars, Ansarallah a lot of will and technique. Vive the resistance

  • Assad must stay

    We can only hope lmao

  • georgeking

    Time to play the Yemen Card!

    • Blas de Lezo

      Saudi-Wahhabis need to be taught a permanent lesson they will never forget.

  • Kananda

    Thanks, Putin!

  • Rhodium 10

    Iran close Hormuz…Houttis destroy Aramco…and petrol will rise to 200 US dollar!…

    • Jake321

      Maybe. But it would be the end of Islamist Iran as a functioning country and society. Guess there is a silver lining to the clouds.

    • verner

      yep – a closed Hormuz,would spell the death of aramco and the houthis closing the strait between yemen and djibouti would just speed the process.

  • Luke Hemmming

    Japan has now gone into a bear market status. Bear market is a 20% drop from peak. Wall st loss another 8%. Australian markets expected to drop on opening. Wow. War, economies dying, disease. It’s all starting to sound all so biblical.

    • PZIVJ

      Some major markets trade in lock step.
      Many Euro markets crossed the 20% mark on the same day, but expect some snap back this week.

      • Shia man

        I don’t know the market has been on a free fall lately and the media isn’t helping the cause with its fear mongering campaign towards China and this overreacted too coronavirus the Zionists know they are losing a grip on the Middle East And the world is leaning more towards China
        The US is doing everything in its power to stop China’s growth and end the Chinese Silk Road project which will spell doom to the American empire and its grip on the world.
        Looks like the World war is just around the corner I personally don’t see things getting better it will only get much worse from here on out get ready for a wave of famine disease world war poverty and death.
        The Zionist won’t just lose and accept loss especially if he is losing a grip on the world he’ll bring down the whole world with him.

  • Shia man

    https://t.co/b4HzRqe75m— Y.N.M.S (@ynms79797979) March 9, 2020

  • Jake321

    Just as this oil war can lead to the collapse of Putz Putin’s RF. Damn, it could be a twofer. Pass the popcorn.

    • Lone Ranger

      U.S. is already belly up…
      I wouldn’t worry about Russia.
      You tried to break them for 6years, they only got stronger…

      • verner

        joke321 is from the israeli leper colony – sole purpose on these threads is to dissemble lies and fake news – all in the name of the jews. joke321 should be ignored.

      • cechas vodobenikov

        obvious—USA: 23 trillion $ debt
        Russia nearly no debt and the energy sector only accounts for 12 % of the Russian economy…US shale oil costs more to extract than it sells for
        best to ignore Jackie–an insecure girl w an oral fixation on food…as Gorer observed, amerikans confer a quasi magical importance onto food—their obesity is epidemic….only amerikans use food terms to address their lovers…honey, sugar, cupcake dumpling, etc….a nation of insecure transgender loving girls…unable to properly speak their own language

  • lovethemapples

    So Saudis are the new target given by GRU?:)))

    • cechas vodobenikov

      wrong it is USA—their shale oil, inferior and more expensive to extract than it sells for will suffer most

      • lovethemapples

        im talking about negative talking point of authors instructed by GRU:)))
        US has always been in the list.

  • cechas vodobenikov

    doubtful—amerikans will print more fake money and deliver it to SA

  • opet ja

    Head shot for US oil producers. They need 70$ barrel at least to avoid bankruptcy. With this price they re in deep shhhiiitt. Already US producers got 1 trillion of loans, now it will go back to US economy.