Article

2016-01-15 Arabia

War Between Saudi Arabia And Iran Could Send Oil Prices To $250

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Posted by Besoeker 2016-01-15 04:35|| || Front Page|| [9 views ] Top

#1 Lifting the ban on exporting oil could mean a complete shift in the balance of trade calcs.

Oil dropped to nearly $30 per barrel on January 12 and oil speculators are not paying any attention to the tension in the Middle East.

Cause they're sitting around with their fracking rigs just waiting for an opportunity to present itself.

Posted by Procopius2k 2016-01-15 08:16|| 2016-01-15 08:16|| Front Page Top

#2 Cause they're sitting around with their fracking rigs just waiting for an opportunity to present itself.

What Procopius2k said. America still imports 40-60% of the oil we use. If we increase domestic supply, even without exporting, that much is freed up to supply the rest of the world, putting a significant damper on prices.

Is Russian production constrained by European sanctions? That would change quickly if Middle Eastern supplies are blocked.

Posted by trailing wife 2016-01-15 10:34|| 2016-01-15 10:34|| Front Page Top

Posted by Lampedusa Creretch3679 2016-01-15 17:42|| 2016-01-15 17:42|| Front Page Top

#4 So what is the problem with that? It will be a price spike. The world gets off Saudi and Iranian oil. Russia gets back into the game. US oil production climbs, especially fracking, Nigeria does ok. Venezuela can't get it together whatever the price.

Saudi and Iran destroy each other. The world becomes a better place. What is the downside?

Posted by Alaska Paul 2016-01-15 18:25|| 2016-01-15 18:25|| Front Page Top

#5 You mean other than the entire global economy screeching to a halt then quickly keeling over dead with its little feet in the air when oil is sustained for long north of ~$150/bbl or so? Aside from that I suppose the downside would probably be limited.

Posted by Halliburton - Foreign Affairs Division 2016-01-15 19:55|| 2016-01-15 19:55|| Front Page Top

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