Crude Crash – Oil Price War Between Saudis and Russia

 In Economy

Saudi Arabia and Russia ae in the midst of an oil price war on Monday, which forced the price of crude oil down. Good news for Americans at the gas pump.

Russia and Saudi Arabia had a 3 year old pact to limit their oil production. That pact fell apart on Friday, according to One America News. The result is that the oil market could be flooded.

It’s been genuinely good news at the gas pump for the rest of us. This morning, the higher priced gas stations were running at around $2.30 per gallon.  But if the price war goes the way they say it will go, we could see even lower prices, at least in the short term.

OAN reported,

“Saudi Arabia plans to boost its crude output above 10 million barrels per day (bpd) in April after the current deal to curb production expires at the end of March, two sources told Reuters on Sunday. Saudi Arabia also cut its official crude selling price.

The kingdom has been producing around 9.7 million bpd in recent months.

Russia, one of the world’s top producers alongside Saudi Arabia and the United States, also said it could lift output and that it could cope with low oil prices for six to 10 years.

OPEC, Russia and other producers had cooperated for three years to restrain supply in a group known as OPEC+. Other countries in that group are likely to raise supply and cut prices to compete, adding supply to a market already awash with crude.”

Here’s the rub: there is a slight downturn in the demand for oil due to the coronavirus. Airplane flights, family vacations, all can either benefit the US consumer or slow down the economy. The Stock Market took a 2,000+ point hit on Monday because of the oil price war on the horizon, and the virus fears. They even suspended trading for 15 minutes to slow down the slide.

But it could be GREAT for the economy in the long run, if lower gas prices help families take more vacations. More people die every year from influenza, as we have previously reported. But the media and Democrats are driving the fear factor to the max in attempt to pull down Trump.

No one is thinking straight over this coronavirus, either. The toilet paper shelves at Walmart were nearly empty this morning (no we didn’t need any).  People are fools for hoarding and not leaving product for others. Maybe we should invest in the toilet paper industry, eh? (Oh, and the paper towels are in short supply too, but honestly, they’re a little rough for bathroom use, but hey, in an emergency…).

The oil price war may not be the big panic the media pushes. Stay tuned.

Featured photo: file screenshot via OilPrice.com

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Comments
  • William
    Reply

    Last week people were clearing shelves of flu medications. For what ? They do know these aren’t cures, right ? They only suppress symptoms.
    The toilet paper rush is ridiculous. Again, for what ? Do they need to keep their ” corona ” clean ? Wipe their ” Aussie ” ?
    Have they forgotten which end you catch the virus from, in other words, they don’t know their heads from their Aussies ?
    Love the oil price war though !!!!!!

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