Saudi Arabia may go broke before the US oil industry buckles

Twila

Nanah Potato
Mar 26, 2003
14,698
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I haven't finished reading the article, but thought I'd post it hear for comment and thoughts.

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If the oil futures market is correct, Saudi Arabia will start running into trouble within two years. It will be in existential crisis by the end of the decade.

The contract price of US crude oil for delivery in December 2020 is currently $62.05, implying a drastic change in the economic landscape for the Middle East and the petro-rentier states.

The Saudis took a huge gamble last November when they stopped supporting prices and opted instead to flood the market and drive out rivals, boosting their own output to 10.6m barrels a day (b/d) into the teeth of the downturn.

Bank of America says OPEC is now "effectively dissolved". The cartel might as well shut down its offices in Vienna to save money.

The rest with graphs, pictures and such
Saudi Arabia may go broke before the US oil industry buckles

k, I've learned this is an old article from Aug 2015 so maybe was posted here already...
 

Angstrom

Hall of Fame Member
May 8, 2011
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Yes it was. My take on it is its part of their plan to run a deficit and use up a ton of US currency they have pilling up in their bank account reserves.

I mean, what would you do with trillions of US paper dollars that could become worthless or lose much of its value if chines yuan currency started to be more frequently used as international exchange currency? In the near future?

I'd use them US dollars and spend them before they become worthless or lose most of their value. Wouldn't you?

So first, the international market will be flooded by US dollars. Second, all foreign oil companies with the exception of Saudi's will be hurting. And then the Yuan currency will be more frequently used for trade of international goods, And oil.


I'm expecting the US currency to take a nose dive in value in the next 3 years. And the Saudi's look like they agree with me.
 

Durry

House Member
May 18, 2010
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At the rate the American economy is gaining strength, the only money worth holding three years from now will be the American dollar. The others will be mostly wall paper.
 

Angstrom

Hall of Fame Member
May 8, 2011
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At the rate the American economy is gaining strength, the only money worth holding three years from now will be the American dollar. The others will be mostly wall paper.

Right now the US economy has been artificially supercharged, and it is doing well from it, But like all artificial stimulus, it's not based on reality, so it's easy to expect the US economy to slump down as it loses its high, and waits for its next hit of crack to keep it alive.
 

Angstrom

Hall of Fame Member
May 8, 2011
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The US Dollar is the go to dollar. And it's based on reality.
Russia India and China don't agree with you, as they have started trading Yuan for Russian oil.

That's why Saudi's are trying to kill Russian oil companies as this means they are sitting on a lot of American dollars that are probably going to lose a lot of value in the next few years as China takes over as the biggest world market, and established its own world currency.
 

Durry

House Member
May 18, 2010
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Russia India and China don't agree with you, as they have started trading Yuan for Russian oil.

That's why Saudi's are trying to kill Russian oil companies as this means they are sitting on a lot of American dollars that are probably going to lose a lot of value in the next few years.

Russia, India and China are all big losers, what do you expect from these loser sh^thole countries.

China has trouble establishing poop.
 

Angstrom

Hall of Fame Member
May 8, 2011
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That means the Yuan will take a huge market share of the global world economy trade reserves currency demand.

That will hurt the green back as demand for it will fall.
 

Angstrom

Hall of Fame Member
May 8, 2011
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Save a wall in your house to plaster with Yuan money.

Now that they have taken all your manufacturing, it's really only natural that they will continue with taking your global monopoly on trade currency. It's the simple logical continuity.
 

Angstrom

Hall of Fame Member
May 8, 2011
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I hope them ragheads do go broke there ain't enough cabs in the world to employ all them pricks.

I wish they were too, unfortunately they are just dumping their soon to lose much of its value American currency.
 

Durry

House Member
May 18, 2010
4,709
286
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Canada
Now that they have taken all your manufacturing, it's really only natural that they will continue with taking your global monopoly on trade currency. It's the simple logical continuity.
Trump is bringing it all back.

Yeay, go Donald
 

darkbeaver

the universe is electric
Jan 26, 2006
41,035
201
63
RR1 Distopia 666 Discordia
I haven't finished reading the article, but thought I'd post it hear for comment and thoughts.

_

_____________________________________________
If the oil futures market is correct, Saudi Arabia will start running into trouble within two years. It will be in existential crisis by the end of the decade.

The contract price of US crude oil for delivery in December 2020 is currently $62.05, implying a drastic change in the economic landscape for the Middle East and the petro-rentier states.

The Saudis took a huge gamble last November when they stopped supporting prices and opted instead to flood the market and drive out rivals, boosting their own output to 10.6m barrels a day (b/d) into the teeth of the downturn.

Bank of America says OPEC is now "effectively dissolved". The cartel might as well shut down its offices in Vienna to save money.

The rest with graphs, pictures and such
Saudi Arabia may go broke before the US oil industry buckles

k, I've learned this is an old article from Aug 2015 so maybe was posted here already...

Ah broken hahahahaahh
 

Murphy

Executive Branch Member
Apr 12, 2013
8,181
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Ontario


It's all part of a cunning plan.
 

pgs

Hall of Fame Member
Nov 29, 2008
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Right now the US economy has been artificially supercharged, and it is doing well from it, But like all artificial stimulus, it's not based on reality, so it's easy to expect the US economy to slump down as it loses its high, and waits for its next hit of crack to keep it alive.
And China and the value of the Yuan is based on reality ?