Putin Dumps MBS to Start a War on America’s Shale Oil Indust

[cmm3rd]

Putin Dumps MBS to Start a War on America’s Shale Oil Industry

https://www.bloomberg.com/news/articles ... l-industry

“Trust me,” he said. “This will be a regrettable day for us all.” Saudi Oil Minister Prince Abdulaziz, speaking at conclusion of OPEC + meeting in Vienna on Friday, where Russia declared an end to its cooperation with OPEC in limiting production, beginning a global price war to the bottom for market share.

[dan_s]

Saudi Arabia cannot afford a prolonged "price war". They need $80/bbl Brent just to balance their budget. They are "bleeding money" with Brent under $50/bbl. Making friends with Putin may not have been in their best interest.

This situation is now sure to result in falling U.S. oil production. The longer this "price war" goes on the more difficult it will be to reverse the falling production.

It is VERY IMPORTANT to know the oil hedges your companies have in place.

[Roadster]

Thanks Dan Just listened to your podcast which was great and heard the news.............

[presidioned]

Peter Zeihan, who used to work with George Friedman at Stratfor weighs in on the Russian oil market:

https://mailchi.mp/zeihan/the-oil-wars-are-going-viral

The Saudis are not acting rationally unless they think this will push Iran over the edge.