Will Saudi Arabia Succeed In Crippling Rusia's Oil Industry By Flooding The World Market And Dropping Prices To A 30-Year Low?

Russian President Vladimir Putin shakes hands with then Saudi Deputy Crown Prince Mohammed bin Salman during a meeting at the Kremlin on May 30, 2017 [Reuters/Pavel Golovkin]

Daily Mail: How Saudi Arabia is trying to CRIPPLE Russian oil industry by flooding world market and dropping price to 30-year low in fight over coronavirus that could hit Trump's re-election hopes by triggering US recession

* The oil market plunged to a 30-year low on Sunday amid coronavirus fears and a price bidding war between Saudi Arabia and Russia
* Russia refused to sign on to a OPEC proposal to reduce global oil production in an effort to stabilize market as the coronavirus has slowed demand for oil
* Russia rebuffed proposal, refusing to boost US oil producers and lose profits
* On Saturday Saudi Arabia, the largest oil producer in world, slashed prices
* Russia told its oil producers to pump as much as they could
* Experts say the tension signals that Saudi Arabia and Russia are 'on the skids'
* Former Saudi Aramco VP said 'Saudi Arabia is protecting its market position'
* If the oil market plunge doesn't stop it could lead to a recession and threaten President Donald Trump's bid for re-election
* Americans will see prices at gas pump go down & a decline in US oil production

Saudi Arabia slashed its oil export prices over the weekend and declared a price war with Russia that sent global markets reeling and marked the sharpest decline in oil futures since 1991.

The price drop came after Russia refused to sign on with a proposal by the Organization of the Petroleum Exporting Countries (OPEC) to cut production globally as the coronavirus outbreak has slowed the demand for oil.

OPEC nations met with allies like Russia on Thursday and Friday in Vienna to reduce oil production by an additional 1.5million barrels per day to stabilize the market starting in April through the end of the year.

But Russia refused to join to agreement.

From Russia's perspective cutting production would boost US oil producers at the expense of international competitors and lead to a loss in profits.

Read more ....

WNU Editor: Besides Russia Saudi Arabia is also targeting America's shale producers. I personally do not understand the strategy that Saudi Arabia is currently implementing. Flooding the world with cheap oil is only going to make US shale producers more efficient in their production and distribution efforts. In regards to Saudi Arabia's impact on Russia's energy industry, Russia's energy industry is divergent. Russia is a major exporter of natural gas to Europe and China, and that alone will minimize the impact that lower oil prices will have. The Russian government has also built up a massive reserve of foreign currencies as a rainy day find. The fund provides the Kremlin with more than enough funds to offset these low oil prices and the loss of income from it for a very long time. The biggest loser that I see from this Saudi policy, aside from countries like Iran and Venezuela that are completely dependent on oil exports, is Saudi Arabia itself. They have arranged the biggest IPO in history with its state oil company Aramco. By these actions Saudi Arabia has shown itself to be a very unreliable partner, and it will negatively impact its IPO share price.

Update: That is about right .... Russia Says It Can Weather $25 Oil For Up To 10 Years (Zero Hedge).

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