Bernd
03/09/2020 (Mon) 19:31:26
No.34976
del
03/09/2020 (Mon) 19:31:26
No.34976
del
>>34975
Yes, on the short term it will hurt everyone. But on the long run Saudis and Russia will come out better than the US, due to the cheaper production cost. With the prices falling US companies can't afford to extract oil.
The Saudi budget needs high prices, but with the cheapest production they won't fall much. The Russian budget can be balanced even with the lower prices (Saudi needs $85 oil for that, Russia only $42), and they (you) produce oil (and gas) relatively cheap.
US companies due to technical difficulties the cost of extraction is high, with the falling prices they can't continue.
(Also Iran's economy is crashing and burning.)
Yes, on the short term it will hurt everyone. But on the long run Saudis and Russia will come out better than the US, due to the cheaper production cost. With the prices falling US companies can't afford to extract oil.
The Saudi budget needs high prices, but with the cheapest production they won't fall much. The Russian budget can be balanced even with the lower prices (Saudi needs $85 oil for that, Russia only $42), and they (you) produce oil (and gas) relatively cheap.
US companies due to technical difficulties the cost of extraction is high, with the falling prices they can't continue.
(Also Iran's economy is crashing and burning.)