The Duran’s Alex Christoforou and Editor-in-Chief Alexander Mercouris discuss the make or break meeting for Saudi Arabia, where Russia and the United States will push for an end to the oil production war launched by Saudi Crown Prince MbS.
The Trump Administration trade policy is nowhere so clear as in the energy area. For years it was thought that the younger Bush Administration was one of the most energy industry friendly in history. But the Trump Administration has gone far beyond that.
Hiring Ray Tillerson, the former CEO of ExxonMobil, as US Secretary of State, sent a strong signal to the entire industry, even though his tenure proved to be temporary.
Global demand for oil is expected to rise, helping push oil prices higher [Xinhua]
For the first time in more than three years when oil prices first took a dive, Brent crude hit $71 a barrel on Thursday on news that inventories had fallen again in the US.
US benchmark West Texas Intermediate crude futures rose to $66.53.
Oil markets have been steadily rising since Saudi Arabian-led OPEC agreed to oil production cuts with non-cartel world producers such as Russia.
Saudi Arabia’s Energy Minister Khalid Al-Falih told reporters in early December that OPEC will monitor oil output and production to ensure that the agreement to curb output is met by all until the end of 2018 [Xinhua]
If you haven’t heard by now, 2017 ends with oil prices well breaching the $60 a barrel mark leaving producers much more confident as they head into 2018.
This is a boon on two fronts for the world’s biggest oil producers Russia and Saudi Arabia.
Donald Trump and Saudi Defense Minister and Deputy Crown Prince Mohammed bin Salman arrive for lunch in the State Dining Room of the White House in Washington, March 14, 2017. (AP/Evan Vcci)
“Suspending disbelief” are the words that spring to mind, as Donald Trump declares that “Saudi Arabia is not paying its fair share for U.S. defense.” What could he be thinking?
The ominous element in this more than ominous situation revolving around the center of world petroleum and natural gas reserves, the Middle East, is the fact that in the recent weeks oil prices, which had temporarily stabilized at an already low $40 range in December, now have plunged another 25% to around $29, outlook grim. Citigroup has forecast $20 oil is possible. Goldman Sachs recently came out saying that it may take lows of $20 a barrel to restabilize world oil markets and get rid of the glut of supply.
It is not a matter of “if” but rather a matter of “when” the entire complex goes under and when that happens, the relatively paltry sums banks have set aside against losses in their energy books will balloon as everyone on Wall Street simultaneously pulls a BOK Financial.
The post A Glimpse Of Things To Come: Bankrupt Shale Producers “Can’t Give Their Assets Away” appeared first on BSNEWS.
Wall Street is the government, and the New York Times is right across town. Maybe that’s all you need to know to understand what’s happened.
RT | June 12, 2013
Russian shale oil reserves are estimated at 75 billion barrels, which puts the country on top of the global standings, followed by the US and China.
According to the report by the US Energy Information Administration (EIA), the estimated American shale gas resources equal 58 billion barrels, with third-place China having 32 billion barrels.
