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Saudi Arabia struggling with low oil prices


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BossHog

 

 

Saudi Arabia suffering.

 

There's a lot of poverty in Saudi. Ever been there?

 

I reckon the chasm there between wealthy and poor is worse than in d'phils and is much more drastic.

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broden

 

 

I take it you don't remember the 1973 OPEC oil crisis

 

i was young but here is what i remember.. i remember my Dad showing us all the tankers sitting off shore.. very low in the water.. just not coming in

 

not that that has anything to do with any of this discussion but that is what i remember

 

 

as far a low crude prices now... good.. i know people who were actually able to afford a decent Christmas for their families this year because of lowered fuel prices

i hope they keep on staying low... lower crude and fuel price are a positive for far more people than they are a negative for

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death_by_cupcake

Factoid: the Saudis need $100 usd per barrel of oil to balance their national budget.

 

That's weird.  Besides a very brief period in the 70's, oil has most recently gone to $100 in October of 2007.  It's danced around $100 barrel for just three years of the last 40 years.  You mean they set their budgets on those three years?  Crazy!  

 

http://www.macrotrends.net/1369/crude-oil-price-history-chart

 

I know the U.S. needs about $100/barrel for our oil field workers to keep at their jobs at their wages, but why does it cost the Saudi's so much.  I can't believe they are paying their slave labor $33+ per hour... and their extraction costs are much less than our due to their more shallow oil.

 I was under the impression that it was OPEC itself that set the low oil prices in order to derail the fracking,explorations and other means of oil acquisition.It's always been an artificially inflated or deflated market depending on what prices they set on it and the myths of how it was running out kept us all paying more at the pumps. If they raise it again we go full bore back into our homegrown oil.  It was a trap they caught themselves in. :twocents:

 

OPEC sets production numbers, not prices.  Commodity traders set prices.

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Kahuna

That's weird.  Besides a very brief period in the 70's, oil has most recently gone to $100 in October of 2007.  It's danced around $100 barrel for just three years of the last 40 years.  You mean they set their budgets on those three years?  Crazy!  

 

http://www.macrotrends.net/1369/crude-oil-price-history-chart

 

I know the U.S. needs about $100/barrel for our oil field workers to keep at their jobs at their wages, but why does it cost the Saudi's so much.  I can't believe they are paying their slave labor $33+ per hour... and their extraction costs are much less than our due to their more shallow oil.

 

OPEC sets production numbers, not prices.  Commodity traders set prices.

 By not cutting production they control prices by either having too much[low gas at the pumps for us] or when they cut production[high prices at the pumps due to scarcity] so when you say they don't control prices that's another myth.. Traders will set the price but not until they have an idea what the future quantities may be. Don't fool yourself..OPEC is in control..

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Saudi is using the oil glut as a political tool to hurt both the Russia and Iran economies. They could have cut production of their daily output two years ago and force up the price. They have a very huge saving accounts where they has stockpile their oil wealth for decades. They decided they can run at a loss for a very long time, a lot longer than their political enemies. 

I got gas for $1.64 a gallon yesterday. When I can fill up for less than $20.00 dollars , life is good... 

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There's a lot of poverty in Saudi. Ever been there?

 

No. Just on the G IV's back then, on test flights of jets owned by Arabs. There may be poverty in Saudi. But, it sure as hell wasn't in their families.

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the.lone.gunman

That's weird.  Besides a very brief period in the 70's, oil has most recently gone to $100 in October of 2007.  It's danced around $100 barrel for just three years of the last 40 years.  You mean they set their budgets on those three years?  Crazy!  

 

http://www.macrotrends.net/1369/crude-oil-price-history-chart

 

I know the U.S. needs about $100/barrel for our oil field workers to keep at their jobs at their wages, but why does it cost the Saudi's so much.  I can't believe they are paying their slave labor $33+ per hour... and their extraction costs are much less than our due to their more shallow oil.

 

OPEC sets production numbers, not prices.  Commodity traders set prices.

 

The Saudis can get their oil out of the ground for $14 bucks a barrel BUT oil is 80% of their GDP. They need $100 bucks a barrel to fund their infrastructure like schools, hospitals, airports etc. Once the $650 billion dollar reserve fund runs out they will have slash spending or go into debt to maintain current standards.

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That Masked Man

i see this morning a phenominal amount of "extra" oil will result if and when Iranian oil gets back into the market!

 

Which is why I don't expect it will get back into the market any time soon. If the US does not find a way to stop it, the Saudis will. Iran is far more of a threat to them than it is to the US or even to Israel.

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The Saudis can get their oil out of the ground for $14 bucks a barrel BUT oil is 80% of their GDP. They need $100 bucks a barrel to fund their infrastructure like schools, hospitals, airports etc. Once the $650 billion dollar reserve fund runs out they will have slash spending or go into debt to maintain current standards.

 

That's one hell of a market up! From $14 USD, to $100 USD, just to continue their economy? They need to learn how to say, "cut back". 

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USMC-Retired

The good thing for many Americans is the Democrats did not get the Fraq act or Fraq pack to pass. Though they tried with the EPA conducting inspections and Department of Interior. Those failures are benifiting us in the pocket book. Leave well enough alone.

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