Iran, oil, and the game of the big players

[abomvubuso]

Comments

Who needs weak oil?

[politic_zone]

It is obvious - low oil prices, weak Russia, strong usd. It should be noted, that the previous Saud king supported so much the US, that declared it would be no problem for if the price was 20-40. Very close friendship...

[abomvubuso]

How does the strong dollar help US exports?

[politic_zone]

Now for the US is more important to weaken Russia. sanctions+low prices=crisis in Russia.

[abomvubuso]

I'd wager the bottom-line for the US, just like for anyone else, is to make profit, rather than hurting competitors.

Assuming that the entire US economy revolves around Russia's fate, sounds too tinfoil-hatt-y.

[politic_zone]

May be... but we can see now their confrontation. Saudi Arabia exports much oil, but it's authorities said, that even dropped price (20$) would be ok.. Export much more than the US does.

[abomvubuso]

And? What's your point?

[politic_zone]

I mean, that weak oil sometimes is not a problem for the exporter country.

[abomvubuso]

That goes without saying. In fact, that's the point I've been making throughout most of this post. Saudi Arabia is manipulating crude oil output and driving the prices down, in order to undermine the emerging competition from fracking companies in North America. They've figured it's better to temporarily sacrifice profit for the sake of removing a potentially dangerous rival while they still have a chance.

Contrary to what most Russian state media might be trying to convince you, this has nothing to do with Russia.

[politic_zone]

"to temporarily sacrifice profit for the sake of removing a potentially dangerous rival while they still have a chance" - Yes, it's real true!

[abomvubuso]

See? We agree on something! :)

[politic_zone]

Exactly!

[mikeyxw]

Saudi Arabia has stated their intent was to drive the frackers out of business, after all, they're the ones who are disrupting the price of oil. The Saudis also got burned last time when they reduced production only to see their fellow OPEC members grab their market share. I'm sure they don't mind that Iran is suffering, but I doubt they really care much about Russia. This hasn't been a very effective strategy, the frackers have reduced their costs dramatically, but it's certainly not friendly. It'll probably drive Venezuela out of business before most frackers, but I guess that'll work as well

[politic_zone]

I agree, that can be no conspiracy. Now the current Saudi king less supports the USA. Possible, that reducing price can be the way for monopoly of Arabia...