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Re: Post on Energy Board - re: price of crudeHere is my translation from Saudi Arabic into American English: >>"We are concerned about volatility in the oil markets The quick drop of oil to ~$50/bbl has us concerned, because anything under $75/bbl leaves a gigantic hole in our national budget. >>and we have seen volatility go outside what we consider to be explainable or reasonable over the last quarter of 2018. F#$ing kafir Americans and Russians have gone too far this time. >>We've seen peaks and troughs in price and activity levels that we believe are completely unjustified by fundamentals." We're the only ones who are supposed to glut the market with oil, like we did in 2014. All that said, I agree with the Saudis on one point. I don't think $50/bbl is sustainable, either. True marginal production cost is still probably about $60-65/bbl now, and I'd expect pricing to (eventually) revert to that level. Lastly, this is a good article on Saudi reserves. Apparently the Saudis still have a ton of cheap oil they can draw on. https://www.bloomberg.com/opinion/articles/2019-01-13/xi-s-leading-china-s-economy-into-the-middle-income-trap |
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Msg # | Subject | Author | Recs | Date Posted |
36941 | Re: Post on Energy Board - re: price of crude | ex_hacker202 | 1 | 1/14/2019 10:36:25 AM |