Fuel is about to get cheaper as Saudi Arabia floods the market

[Mr.BR]

Saudis plan big oil output hike, beginning all-out price war
The Kingdom started a price war on Saturday by slashing the prices on oil exports


After Russia refused to OPEC+ cut of volume , Sauds went all out , Russian target is of course the over leveraged US shale while KSA is going after Russia not playing ball but US shale is likely to take even harder hit due to KSA action. Note as this will bring much fewer Benjamins into KSA coffers MBS is in for the next round of shakedowns to preempt a coup.

''The move comes at a time where Saudi Arabia is under financial pressure. The government's 2020 budget was predicted to have a $50 billion deficit or 6.4% of the Saudi GDP. But that was based on an estimated crude oil price of $62-63 per barrel, and assumed a crude production at around 9.8 million barrels per day.

In the first week of January crude oil reached $69/bl but it has since dropped to $45/bl as the coronavirus crisis destroyed the global demand. The Saudis tried to make a deal with Russia, the second largest exporter after Saudi Arabia, to together cut oil production to keep the price up. But Russia rejected a new OPEC cut. It wants to keep its production up and it will use the crisis to further undermine U.S. oil fracking production''




Meanwhile we get somewhat cheaper gasoline.



https://gulfnews.com/business/saudis-plan-big-oil-output-hike-beginning-all-out-price-war-1.70234076

https://www.wsj.com/articles/saudi-...aining-two-rivals-to-crown-prince-11583599676

https://finance.yahoo.com/news/putin-dumps-mbs-start-war-172746296.html

 

[Jefe's Dope]

When 1.4 BILLION people aren't driving in China, there's gonna be a surplus.

 

[Mr.BR]

They are talking additional pumping more volume (even tough there is already surplus) and price discounts

 

[little_scrapper]

If your prepping then a couple 50 gallon barrels should be in your future.

 

[niteshooter]

So, we are time traveling back to 2015 again.
Yeehaw...(sarcasm).
Nice knowing you guys. Might not be able to buy internet or basic shit for that matter in a few months.

If your looking for a good deal on a house, atv, truck he’ll anything; come to Texas later this year and buy off all the out of work oilfield and pipeline people.

Piss on it, always thought it would be an adventure to go to Wyoming and work for Weatherby or some such outfit.

 

[wade2big]

So, we are time traveling back to 2015 again.
Yeehaw...(sarcasm).
Nice knowing you guys. Might not be able to buy internet or basic shit for that matter in a few months.

If your looking for a good deal on a house, atv, truck he’ll anything; come to Texas later this year and buy off all the out of work oilfield and pipeline people.

Piss on it, always thought it would be an adventure to go to Wyoming and work for Weatherby or some such outfit.

Its been slow for us. Not good.

 

[deersniper]

If your prepping then a couple 50 gallon barrels should be in your future.

Or a 10000 gal barrel

 

[little_scrapper]

Man! How nice would that be. Like a 10K gal underground tank.

How long can you keep fuel for in one of those if you add stabilizers?

 

[Bender]

Man! How nice would that be. Like a 10K gal underground tank.

How long can you keep fuel for in one of those if you add stabilizers?

Diesel stores pretty much indefinitely. Gasoline, as long as its kept cool and you don’t let the aromatics vapor off it will store for a few years. Just keep it sealed.

 

[packratt]

Diesel stores pretty much indefinitely. Gasoline, as long as its kept cool and you don’t let the aromatics vapor off it will store for a few years. Just keep it sealed.

As long as ethanol isn't added.

 

[Codiekfx400]

Stabil Marine formula works with ethanol fuel. Will keep it for 2 years. Will the US government subsidize the Fracking industry is the big question here?

 

[Edgecrusher]

I mean seriously though, fuck the Saudis.

 

[candyx]

I mean seriously though, fuck the Saudis.

Seriously it would be prudent to take Saudi Arabia as an outpost, one we get the oil and two good it would give us excellent position in that part of the world for our Military Strike Force.

 

[Dewey7271]

Pissed off Russia big time with that move.
Worldwide markets are getting crushed.
Futures are limit down.

 

[rjacobs]

Pissed off Russia big time with that move.
Worldwide markets are getting crushed.
Futures are limit down.

I dont think I have EVER heard of a FUTURES market being shut down due to hitting a circuit breaker point...

This shit is IRRATIONAL...

 

[Spblademaker]

Election year. Gas prices usually drop.

 

[DIBBS]

Except Washington State... damn DUMBOCRAPs have proposed clean fuel legislation, and I believe, another 50 cents/gallon in taxes, fawkeen ridiculous.

 

[candyx]

Funny to watch evil politicians tell the sheep that they can save the earth , its ashamed that the sheep can't figure out that a politician can only do one thing in life and thats lie to the sheep.......

 

[ditter]

Sun+solar panels+electric vehicles= screw the Saudis

 

[Codiekfx400]

Solar panels are made in China and then subsidized here in the USA. Electric cars again parts sourced from Asia and subsidized by the USA. Anyone see the stupid pattern here. Ethanol, Fracking, and USA oil should be our go to for energy. Or at least some USA built solar panels.

 

[Long Range 338]

On the plus side we get to see whom our so called "Allies" choose when push comes to shove.

 

[W54/XM-388]

Build nuclear power plants, use the electricity to either make hydrogen from sea water, or gasoline from atmospheric carbon dioxide then tell the rest of the world to try to sell their fuel to anyone else that will buy and let the despots in the middle east get eaten alive by the people they can no longer pay off.

 

[DuneBoer]

Pri G makes bad fuel good. Store non ethanol premium.

 

[Carnifex]

I dont think I have EVER heard of a FUTURES market being shut down due to hitting a circuit breaker point...

This shit is IRRATIONAL...

Technically they aren't shut down. They just hit an artificially imposed floor. The market is still open and they can be bid higher. The floor lifts on the cash open. Its not the first time we've gone limit down.

 

[Aries256]

Great, and I just filled up.

 

[TheGerman]

Yeah but what about ammo and skoal?

 

[Kir]

With most people staying at home, I will soon be living in a ghost town. Most working from home, having things delivered to their door. Cheap gas for me to fill up and drive around with NO TRAFFIC! I love it! I always knew...what this world needs is a good plague. Solve the over population problem and all other problems that stem from that.

 

[madppcs]

And we somewhat just came out of a downturn in the oilfield. Here we go again.

WTI CRUDE •	29.55	-11.73	-28.42%
BRENT CRUDE •	33.30	-11.97	-26.44%
MARS US •	41.98	-4.72	-10.11%
OPEC BASKET •4 days	51.74	-0.25	-0.48%
URALS •	48.15	-0.10	-0.21%

 

[MtnCreek]

Corn should be drank, not burned as fuel.

 

[Tahoe]

Stabil Marine formula works with ethanol fuel. Will keep it for 2 years. Will the US government subsidize the Fracking industry is the big question here?

Why would we socialize oil.. Let’s hope the politicians don’t think this is ok.

 

[Tahoe]

I dont think I have EVER heard of a FUTURES market being shut down due to hitting a circuit breaker point...

This shit is IRRATIONAL...

The market is open just a floor 5% down the limits start on cash open with first being 7% down then 13% then 20% and closed for the day.

 

[Tahoe]

CL hit a low of 27.83 last night over 30% down. frackers are leveraged with 40% of all high yield debt this could be the end of most.

 

[Downtown]

Well, just to play Devils Advocate, one reason to support the oil industry would be to keep it viable while totally screwing countries who we don't like. Russia, Venezuela, Iran, these countries really hurt when oil drops. If we kept our industry afloat thru the dip, we would be ready to take advantage quickly when the price turned around. Personally, not a fan of supporting industry with my tax dollars. Just throwing out a reason why.

 

[pmclaine]

When your only hope is Joe Biden you need to have contingencies.

Amazing how unified the globalists are to destroy national sovereignty and the idea of freedom.

Pain is coming. Pain manufactured by the enemies of the US.

Hang tough and remember who caused this stuff.

 

[Tahoe]

Im more of the why kick the can down the road. Everyone in the industry is aware these companies are living on borrowed time. They borrowed money with no way to pay it back unless oil goes well above 100$ a barrel in some cases. I read a buyout that happened last week and to break even they need oil over 150$.

 

[E. Bryant]

I dont think I have EVER heard of a FUTURES market being shut down due to hitting a circuit breaker point...

That's because it doesn't happen often. IIRC, the last instance of the S&P opening limit-down was... the Monday after the Lehman Bros collapse.

This shit is IRRATIONAL...

No, this is perfectly rational. What was irrational prior to this point was the valuation of the S&P as a whole, and certain stocks (*cough* Tesla) specifically.

Once the fire starts, it doesn't care about the ignition source - it's just looking for fuel and oxygen to consume. That's were we are at, and in the coming days and weeks, secondary and tertiary effects will take over to reveal structural issues in areas of the economy that we've forgotten about since the last collapse.

 

[rjacobs]

No, this is perfectly rational. What was irrational prior to this point was the valuation of the S&P as a whole, and certain stocks (*cough* Tesla) specifically.

Once the fire starts, it doesn't care about the ignition source - it's just looking for fuel and oxygen to consume. That's were we are at, and in the coming days and weeks, secondary and tertiary effects will take over to reveal structural issues in areas of the economy that we've forgotten about since the last collapse.

I was speaking to the whole overall panic, not just the stock market.

Why dont we have an irrational fear of the flu? CDC estimates there were, on the low side 34 million cases in the 2019/2020 flu season in the USA. So ~10% of the population of the USA got the flu. As of Friday there were 164 cases of Covid19 in the USA(11 deaths), lets say over the weekend that number doubled(i dont think it quite doubled, but we will see today when the CDC updates their website) so 300 give or take(22 deaths)... out of 350 million population... There are around 3300 deaths due to car wreck DAILY(edit) in the world... In China there are what, 100k cases(reported) and 3500 deaths. The % is slightly different, but a lot of those deaths happened early on when nobody knew how to care for this and the system was overwhelmed. I believe their case number has dropped off and most have recovered already. The numbers over there are 100k out of 1.4 billion population, so a drop in the bucket, so to speak. Unless I screwed up my math(which is possible) thats only like .0007% of the population(might be .007, not sure I converted it properly from decimal to percent).

I just cant get worked up from a numbers standpoint that this is the boogeyman that is going to collapse the world economy...yet here we are.

 

[Maggot]

Solar panels are made in China and then subsidized here in the USA. Electric cars again parts sourced from Asia and subsidized by the USA. Anyone see the stupid pattern here. Ethanol, Fracking, and USA oil should be our go to for energy. Or at least some USA built solar panels.

Trouble being most of the lithium and other heavy metals are sourced from china. Extracting and refining them is a really nasty toxic process. Let the yellow's poison themselves.

 

[pmclaine]

Trouble being most of the lithium and other heavy metals are sourced from china. Extracting and refining them is a really nasty toxic process. Let the yellow's poison themselves.

Which exposes the hypocrisy of the green movement and what its really about.

We have other sources of rare earths yet we let these assholes hold us hostage and they use the dirtiest processes possible to screw us both ways.

If either via the EPA or OSHA we cant do it here than it should not be allowed in our imports without charging them a high tariff allowing domestic producers to compete.

 

[2ndamendfan]

I was speaking to the whole overall panic, not just the stock market.

Why dont we have an irrational fear of the flu? CDC estimates there were, on the low side 34 million cases in the 2019/2020 flu season in the USA. So ~10% of the population of the USA got the flu. As of Friday there were 164 cases of Covid19 in the USA(11 deaths), lets say over the weekend that number doubled(i dont think it quite doubled, but we will see today when the CDC updates their website) so 300 give or take(22 deaths)... out of 350 million population... There are around 3300 deaths due to car wreck DAILY in the USA... In China there are what, 100k cases(reported) and 3500 deaths. The % is slightly different, but a lot of those deaths happened early on when nobody knew how to care for this and the system was overwhelmed. I believe their case number has dropped off and most have recovered already. The numbers over there are 100k out of 1.4 billion population, so a drop in the bucket, so to speak. Unless I screwed up my math(which is possible) thats only like .0007% of the population(might be .007, not sure I converted it properly from decimal to percent).

I just cant get worked up from a numbers standpoint that this is the boogeyman that is going to collapse the world economy...yet here we are.

There might be 3300 fender benders a day but there is NO FUCKING WAY that 3300 USA citizens die everyday in car accidents. Are you fucking brain dead?
That is a Joe Biden statement right there, 3300x365 =1,204,500 deaths a year according to you.
I do believe the Covid19 virus is being blown out of proportion but damn there is no need to go all CNN with facts.

back to the 1,204,500 number.

There are in fact about 1.2 million "accidents" involving motorized vehicles each year (so about 3300 a day) of those accident about 30,000 are killed each year.

30,000/365= 82.2 deaths a day from motorized vehicles nationwide.

 

[Codiekfx400]

Corn should be drank, not burned as fuel.

But that E85 sure smells good coming out the tail pipe. Smells like alcohol.

 

[rjacobs]

There might be 3300 fender benders a day but there is NO FUCKING WAY that 3300 USA citizens die everyday in car accidents. Are you fucking brain dead?
That is a Joe Biden statement right there, 3300x365 =1,204,500 deaths a year according to you.
I do believe the Covid19 virus is being blown out of proportion but damn there is no need to go all CNN with facts.

back to the 1,204,500 number.

There are in fact about 1.2 million "accidents" involving motorized vehicles each year (so about 3300 a day) of those accident about 30,000 are killed each year.

30,000/365= 82.2 deaths a day from motorized vehicles nationwide.

I went and re-checked my search source and while its a USA based organization, it seems to speak to global numbers...

So I will revise... 3300 traffic deaths daily in the world...

 

[Mark1954]

Build nuclear power plants, use the electricity to either make hydrogen from sea water, or gasoline from atmospheric carbon dioxide then tell the rest of the world to try to sell their fuel to anyone else that will buy and let the despots in the middle east get eaten alive by the people they can no longer pay off.

Kiss your super duty pickup truck goodbye. I love mine and without fossil fuel we couldn’t afford to run them. Man made climate change is a hoax created to drive us away from fossil fuel and strengthen the grip of government.

 

[E. Bryant]

But that E85 sure smells good coming out the tail pipe. Smells like alcohol.

Yep. And my ZL1 makes about 75 additional ponies at the rear wheels when burning the stuff. It's nice to buy 100 octane race gas at the pump for $2/gal.

But as an everyday motor fuel, it's a terrible idea.

 

[pmclaine]

Build nuclear power plants, use the electricity to either make hydrogen from sea water, or gasoline from atmospheric carbon dioxide then tell the rest of the world to try to sell their fuel to anyone else that will buy and let the despots in the middle east get eaten alive by the people they can no longer pay off.

But than the pols wont be able to screw the country for their personal enrichment.

Energy and its scarcity, real or imagined, is big money and power (no pun intended).

Nothing but water could be coming from the exhaust stacks and tail pipes if there were "power" and influence to be gained.

 

[goinghunting]

Or a 10000 gal barrel

Glad I have 20k?

 

[pmclaine]

Just checked....home heating oil at $1.87/gallon if I buy right now.

Was $2.40/gallon three weeks or so ago when I filled up.

Ill be filling the tank soon and stocking in ammo with the savings.

 

[E. Bryant]

I just cant get worked up from a numbers standpoint that this is the boogeyman that is going to collapse the world economy...yet here we are.

The markets have been propped up in such a fragile way that doesn't matter what pushes them over - once that Jenga tower starts to fall, gravity takes over at 9.8 m/s^2.

I agree that coronavirus itself isn't a huge deal. But it doesn't have to be anything big to expose the irrationality of the world economy. Here in the US alone, there is probably trillions in consumer debt (home/auto/student loans + revolving debt) that would go into default with a couple missed paycheck cycles. Businesses have been operating just as foolishly. The markets have been ignoring that while simultaneously making silly predictions about future growth, and those illusions just got ripped away. The fact that the markets didn't go on a big tear after last week's Fed rate cut was the indication that we're suddenly playing by different rules.

It's possible that this all blows over in a month or two, and that we'll be back to Dow 30k by summer. But man, I remember similar predictions in 2008, and the "rational optimists" got their faces ripped off by what followed.

 

[Codiekfx400]

Yep. And my ZL1 makes about 75 additional ponies at the rear wheels when burning the stuff. It's nice to buy 100 octane race gas at the pump for $2/gal.

But as an everyday motor fuel, it's a terrible idea.

I use E85 year around for a everyday fuel. The only time it doesn’t make sense is when the vehicle is going to sit idle for months. Ethanol has a poor shelf life but if your driving daily it works great and saves some money as well.

 

[Tahoe]

This is no different than the majority of companies that are doing buy backs. Many are using debt, then when bad times come they have no cash on hand. Boeing did over 40 billion of buybacks to Jack its share prices up then had to go to debt market last month to stay afloat, just nuts.

The US markets have been fueled on hope since the first bailouts in 08, either we let them correct now or we keep kicking can down road.... I vote for let’s let the market find A natural bottom, if it’s 50% down so be it.