Oil prices are crashing today. At one point, crude oil prices were down more than 30%. While prices have bounced off those lows, they were down more than 20% at 8:00 a.m. EDT on Monday. Both Saudi Arabia and Russia have acted rationally and in their own best interests over the last week, but look for Russia to come out on top in this oil price war. “The main reason why coronavirus is a threat to oil prices is that China is the main new consumer of oil in the world,” said economist Cailin Birch. Russian-Saudi price war sends oil An intensifying oil price war between Saudi Arabia and Russia has created "very painful" market conditions for the world's largest crude producers, analysts have told CNBC, with many braced for "$20 oil in 2020 is coming," Ali Khedery, formerly Exxon's senior Middle East advisor and now CEO of Dubai-based strategy firm Dragoman Ventures, wrote on Twitter on Sunday.
Saudi Arabia, the world’s top oil exporter, will step up crude oil production from next month, flooding global markets and most likely depressing petrol and diesel prices, in response to Russia Saudi Oil Price Cut Is a Market Shock With Wide Tremors Oil producers in the United States and other nations brace for lower revenue, reduced investment and job losses as a global glut is compounded. Shares in Saudi Aramco, the national oil producer for Saudi Arabia, fell for the first time below its December initial public offering level. The Riyadh stock exchange fell more than 8 percent. Oil prices are crashing today. At one point, crude oil prices were down more than 30%. While prices have bounced off those lows, they were down more than 20% at 8:00 a.m. EDT on Monday.
In the past couple of months, Saudi Arabia has been pumping 9.7m bpd. Saudi Arabia has an oil output capacity of 12m bpd, giving it the ability to swiftly increase production.
Oil prices will average $61/b in 2020 and $68/b in 2021. OPEC's leader, Saudi Arabia, wants higher oil prices because that's the source of its government
Both Saudi Arabia and Russia have acted rationally and in their own best interests over the last week, but look for Russia to come out on top in this oil price war. “The main reason why coronavirus is a threat to oil prices is that China is the main new consumer of oil in the world,” said economist Cailin Birch. Russian-Saudi price war sends oil An intensifying oil price war between Saudi Arabia and Russia has created "very painful" market conditions for the world's largest crude producers, analysts have told CNBC, with many braced for "$20 oil in 2020 is coming," Ali Khedery, formerly Exxon's senior Middle East advisor and now CEO of Dubai-based strategy firm Dragoman Ventures, wrote on Twitter on Sunday.