May 13, 2015

Oil Price War

From today's Financial Times:
Saudi Arabia says its strategy of squeezing high-cost rivals such as US shale producers is succeeding, as the world’s largest crude exporter seeks to reassert itself as the dominant force in the global oil market.

The kingdom’s production rose to a record high of 10.3m barrels a day in April and there is no sign that it plans to reverse its policy at next month’s meeting of Opec, the producers’ cartel, in Vienna.

“There is no doubt about it, the price fall of the last several months has deterred investors away from expensive oil including US shale, deep offshore and heavy oils,” a Saudi official told the Financial Times in Riyadh, giving a rare insight into t
Maybe I'm stupid, but if the Saudi forced cuts in higher priced oil production, then why has the price of gas increased by over 60 cents per gallon in the past few months???


Ian H said...

If you can figure that out, write a book and make a million1

Gorges Smythe said...

Whatever the market will bear, my friend! Greed knows no boundaries.

Doom said...

It was allowed, because it was cheaper than having to wage war with Russia, deal with Venezuela, and Iran quite as directly. While it is going to dig into our own oil producers (a bone for libs, but it's actually as I prefer it... if there really is a limited supply of oil, which may or may not be... they honestly don't know much about the stuff).

On the good side, with the Saudis and other terrorist supporting nations getting half the cash they were, they have much less to hand out, and perfect cover for it.

What pisses me off is that our governments have worked hard to make sure US drivers don't see much of a savings from it. The whole damn thing is rigged.