opec cuts?

vicirek said:
US needs higher oil prices too because of gas tax that is major cash grab from the population. With lower oil prices lack of tax revenue has to be covered by higher deficits and debts. It is a game of who blinks first.
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gas tax is paid per gallon, not a percentage of price
 
See oil is down in premarket. glad to see everyone is still smart lol. iran just announced 1.5 mil/b and you can expect that due to so many years of being out of the market
 
cashclay said:
See oil is down in premarket. glad to see everyone is still smart lol. iran just announced 1.5 mil/b and you can expect that due to so many years of being out of the market
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Not entirely true. India and China never stopped buying oil from Iran. The embargo was only the US and Europe, a big customer no doubt which is why the Saudi's don't want to give up that market share they keep talking about. The Saudis knew this deal was coming and purposely crashed prices, they got to hit several birds with one stone (Iran, Russia, US shale, North Sea)

Anyone else who didn't want to recognize the embargo was still free to buy Iran oil.

Think about all the oil leaking out of Iraq/Syria due to ISIS trading it in a war zone, if they can manage to get it out and get paid for it then you would be naive to think Iran wasn't selling a single drop.

https://en.wikipedia.org/wiki/Sanctions_against_Iran
 
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There is a huge oversupply these days, I don't think that this is possible these days, especially after Iran's deal. They're hungry of money and they definitely won't cut
 
Just look at what oil did in 2008. It went up to 143 then down to the 30 range in just a few months.

These type of moves happen in commodities.
The extra capacity being pumped is only 2% a day extra that is causing this price drop.
 
Cost of production for Saudi Arabia is under $15, Russia : $30-40. Cheapest US shale oil : $40 (and average probably about $55-60), You can see who has the most to lose if they don't cut.
 
but i think you guys are forgetting the dynamics between a country and company and how it operates. Theres a lot more factors to consider when running a country based on oil rev like most opec countries are.
 
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