r/economy • u/boppinmule • 1d ago
Oil prices crumble as Saudi Arabia throws in the towel on restricting supply
https://www.middleeasteye.net/news/oil-prices-crumbles-saudi-arabia-throws-towel-restricting-supply251
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u/Hryusha88 18h ago
At these prices russia's collapse incoming....
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u/Paltamachine 10h ago
Russia has one of the highest profit margins.. if they compete on price, they could be the last to fall
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u/Thatisme01 7h ago
No one thinks any of the oil-producing nations are going to ‘fail’.
But a lower oil price will mean less revenue to finance Russia’s war on Ukraine.
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u/Listen2Wolff 1d ago
One has to wonder about those "wild caters" in West Texas. Their oil production costs are now greater than the price they can get. I forget who it was that was warning about this about a year ago.
One thing we can depend on, the Oligarchy is going to move in and buy those wells for cheap. They'll just sit on them for a bit (which could be years) and then OPEC will do its thing again.
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u/beliefinphilosophy 40m ago
This needs to be higher. The goal is to stop American oil production from increasing, and letting the US's fight with Canada drive the US crude market back to Saudi control, and once that's cinched up, bring it back to OPEC for control.
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u/jjngundam 1d ago
Trump is so weak on foreign policy. They did this once in his first term and now doing it again. And trump will just sit back and let it happen. Never seen a weak useless president in my life.
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u/Cryosanth 1d ago
High oil prices = orange man bad, low prices = orange man bad. Got it.
There are plenty of reasons to hate Trump right now, but this is the worst take, you sound like an ai bot.
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u/jjngundam 1d ago
Its always the short sighted people who dunno how this is going to end. THis will destroy the american oil industry. And it will take years to bring it back. Short term price cut but its going to go up when teh supply disappears. Dont you remember covid, and after covid when oil prices shot up? no? you must the the AI or the dumbest person in your family.
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u/korinth86 1d ago
It's going to end US oil drilling, refiners will still be well positioned to refine all the heavy crude from overseas they can get.
The US is in the Natural gas business now. More export terminals being made. It's drill baby drill NG and there seems to be no shortage of buyers.
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u/thehourglasses 17h ago
Just don’t comment if you’re intentionally trying to lower other people’s IQ with your compete idiocy.
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u/dc4_checkdown 1d ago
Wtf this makes oil cheaper.
"Trump is so weak the price of oil is dropping, which eventually leads me to pay less for gas. I need higher gas prices." - You
Is there anything the left does not get mad over
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u/FrodoCraggins 1d ago
You know the US produces oil too, right? What do artificially low prices do for American profit margins?
This is the Saudis trying to strangle American oil companies to death so they can retain outsized influence on the market without competition.
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23h ago
[deleted]
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u/Dedpoolpicachew 16h ago
Well, to be honest, the oil fuckos weren’t all in on this “drill baby drill” bullshit. They’ve drilled as much as they needed to to maintain supply and keep the price at about 70/bbl. They don’t make money below about 50/bbl. This is going to kill the oil fuckos… again. This isn’t the first time the Saudi’s have done this.
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u/Dedpoolpicachew 16h ago
Not only that, but Trump is killing every US program to get us off oil. He want’s to “drill baby drill” but never bothered to check with the oil fuckos to see what price they needed to maintain the viability of their drilling. This is the Saudi’s hitting back at the tariffs. Trump is a fucking moron. So easily played into killing the US energy industry so we’re dependent on Saudis, Chinese, basically anyone not stupid who has invested in “green energy”.
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u/dc4_checkdown 1d ago
Oh okay, poor oil companies
What does the left stand for today
Pro war
Anti electric vehicles
Pro oil companies
Pro cheap labor
Pro big business
Anti Union
Wtf is happening, you all are fucking lost. Trump broke you all
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u/krishna_p 1d ago edited 18h ago
It's not a left/right thing. It's a not being a fucking regard thing.
You're a fucking regard if you don't know the Saudis are pushing oil prices below the US companies profit margins to bankrupt them. We know Saudi Arabia needs oil at 90 a barrel to balance their budget, but US taps keep it below 80 so they are pushing to 60.
Because they're a fucking nation state they can stay solvent longer than any US competitor. Once US oil goes bust, oil prices are set to go over 100.
Fucking regard.
Edit: added a g
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u/mnradiofan 1d ago
You do understand that foreign countries owning all the US oil production is bad for national security, right?
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u/FrodoCraggins 1d ago
What do you stand for? You obviously hate America and love the Saudis, so I'm guessing islamic extremism?
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u/dc4_checkdown 1d ago
If you don't like big oil companies you're an islamist extremists
Is this a Dick Cheneys burner?
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u/Puckz_N_Boltz90 1d ago
It’s impossible with you and you always move the goalposts lol
“This means gas is cheaper” - Gets schooled on how this not good for American oil companies
“Oh so now you love oil companies”
What an asshat
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u/GoodDecision 1d ago
Don't forget the switch up from American hegemony and imperialism (bad!) to "soft power" (good!)
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u/Bad_User2077 1d ago
Let them try. It didn't work last time. I am looking forward to $2 a gallon gas again. They can start putting those Trump "I did this" stickers on pumps again.
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u/mnradiofan 1d ago
It did work last time, as Saudi Arabia bought one of our largest oil refineries in Texas.
This is their end game, they are sweating US competition, so drive that competition out of business and buy up what remains for pennies on the dollar.
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u/Flash604 1d ago
It didn't work? There were 100 US oil companies that went bankrupt in 2016 - 2017.
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u/Check_Me_Out-Boss 1d ago
Who was president in 2016?
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u/Flash604 1d ago
Stay on topic
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u/Check_Me_Out-Boss 1d ago
You mentioned 2016. And the dates I believe you were looking for were around 2015 when Saudi Arabia killed off US shale oil companies.
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u/Flash604 23h ago
My statement provided the years when bankruptcies were above normal. My statement remains correct. Thank you for providing evidence that it happened for the reason I said it did.
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u/Joeyfingis 1d ago
I'll put a Trump did this sticker on all the small business closures who can't afford new inventory because of this dumbass trade war
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u/maywellbe 17h ago
My new definition of “a sucker” is someone who puts those “I did this!” stickers on pumps and thinks they’re smarter than other people. It’s village-idiot level misunderstanding of how the world actually works. Americans used to have common sense. (And decency.) WTF happened? Simply sad.
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u/BigMcLargeHuge- 18h ago
Price of oil drops, margins drop, gas prices go up to reclaim lost margins.
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u/jjngundam 1d ago
do you remember covid, the lower cost destroyed the oil industry. Can you afford another american industry collapsing? please broaden your mind and not just your small idea of your world.
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u/LanceArmsweak 11h ago
You don’t understand how markets work. It’s clear. Perhaps you should stick to the kiddy pool. It’s shallow and you have a smaller chance of drowning, but something suggests that despite the odds, you’d give it your best shot.
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u/Bad_User2077 1d ago
Is there anything the left does not get mad over
Short answer: No. If Trump is for something, they have to be against it. For example, Trump deports illegal immigrant gang members, the left fights to keep them in the country.
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u/dtanner01 14h ago
Weak your ass, stupid
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u/jjngundam 14h ago
Ummm he called his own policy from the first term stupid. He said he should be impeached cause the market fell 1000 points.You should listen to your own president.
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u/LanceArmsweak 11h ago
Yeah. You read what they said. Only his cock gobblers find him to be “strong.” He’s not only weak, but he’s fat as fuck and pathetic too. He ain’t fucking you dude. Ever.
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u/Glum_Blacksmith_6389 1d ago
“Throws in the towel” wonder whats going on there.
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u/bindermichi 21h ago
It's probably about sending a message.
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u/Glum_Blacksmith_6389 21h ago
One can only imagine, yes? While some of us focus on haircuts.
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u/bindermichi 21h ago
Everyone knows that US oil production is expensive and need a minimum price per barrel to be profitable. Other oil exporters can easily flood the market and bring down the price without even trying. Which they just did. More a show of power and who controls who's economy.
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u/newswall-org 1d ago
More on this subject from other reputable sources:
- Reuters (A): VIEW Oil tumbles 8% after China retaliates in global trade war
- Al Jazeera (C+): Why is Trump ‘very angry’ with Putin and who will secondary tariffs hurt?
- CNBC (B): Eight OPEC+ producers accelerate crude oil output hikes, pushing oil prices 6% lower
- Business Insider (B-): Oil markets are worried about the latest round of Trump tariff threats
Extended Summary | FAQ & Grades | I'm a bot
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u/darkcatpirate 20h ago
Karma
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u/Dedpoolpicachew 17h ago
No, plan… Trump crashes the economy in the US, pushing the whole world into a recession, Saudi’s come in and eliminate the caps on production crashing the price… putting US producers out of business… again.
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u/SlummiPorvari 5h ago
Consumption and oil price is going to fall because of lower economic activity and looming recession somewhere so the rational way of keep money flowing is to increase supply which can in turn drive economic activity elsewhere.
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u/djm2346 22h ago
This administration getting the Saudis to increase supply just killed US oil production