Falling oil prices....really the work of the Saudis?

[Jacob]

Why would the Saudi's have a particular animus towards Putin?

And is there anything particular heated between the Saudis and Iran? Is it the ISIL thing in Syria?

He's supporting the infidels in Damascus and Teheran. They hate his guts and he hates them right back. Not all hatreds in the world involve americans or israelis.

Somehow that's reassuring

[Viking]

Why would the Saudi's have a particular animus towards Putin?

And is there anything particular heated between the Saudis and Iran? Is it the ISIL thing in Syria?

He's supporting the infidels in Damascus and Teheran. They hate his guts and he hates them right back. Not all hatreds in the world involve americans or israelis.

Somehow that's reassuring

Every now and then we do need to remind our american brothers that other people are hated too.

[Sheilbh]

And is there anything particular heated between the Saudis and Iran? Is it the ISIL thing in Syria?

Yep. It's been referred to as a Middle Eastern cold war with the Saudis and the Iranians fighting through proxies in Syria, Iraq and Bahrain (with the added complication of Turkey-Qatar's role). They're also very alarmed at the possibility of a Western-Iranian rapprochement.

[Caliga]

I've heard several times that falling oil prices are the result of SA producing more in an attempt to drive out higher priced oil production.


Is there any actual evidence that is what is happening?

My boss was yammering on about this yesterday, and that's his theory too.

[Martinus]

I've heard several times that falling oil prices are the result of SA producing more in an attempt to drive out higher priced oil production.


Is there any actual evidence that is what is happening?

My boss was yammering on about this yesterday, and that's his theory too.

I don't think it's his theory. People usually read some stuff somewhere and the first thing they read becomes "their theory".

[Caliga]

Well ok, it's the theory that he happens to agree with.

[Siege]

This is the OPEC sabotaging the fracking industry.

[The Brain]

Language.

[Jacob]

And is there anything particular heated between the Saudis and Iran? Is it the ISIL thing in Syria?

Yep. It's been referred to as a Middle Eastern cold war with the Saudis and the Iranians fighting through proxies in Syria, Iraq and Bahrain (with the added complication of Turkey-Qatar's role). They're also very alarmed at the possibility of a Western-Iranian rapprochement.

Yeah, I mean, I know they don't like each other. I was more wondering if there'd been any specific recent events that precipitated this. Perhaps it's more a matter of the demand for oil dropping and the Saudis seizing that opportunity, rather than a reaction specific events in the conflict? Or has the Iran side recently made some big moves requiring a response?

[Martinus]

This is the OPEC sabotaging the fracking industry.

If so, the sabotage would be mainly reputational one - as, apparently, fracking has much lower financial barriers of entry than drilling - so even if fracking companies go bust now, it won't be that difficult to re-start the business when prices go up again.

[Admiral Yi]

If so, the sabotage would be mainly reputational one - as, apparently, fracking has much lower financial barriers of entry than drilling - so even if fracking companies go bust now, it won't be that difficult to re-start the business when prices go up again.

The Saudis don't necessarily need to keep the wells running night and day to deter fracking.  The threat of doing so might be enough to dissuade a potential fracker.

[Sheilbh]

Yeah, I mean, I know they don't like each other. I was more wondering if there'd been any specific recent events that precipitated this. Perhaps it's more a matter of the demand for oil dropping and the Saudis seizing that opportunity, rather than a reaction specific events in the conflict? Or has the Iran side recently made some big moves requiring a response?

I think your first suggestion's probably right. The specific event may be the fall in demand and increase in supply that allows the Saudis to fuck with the Iranians (and, possibly, the Qataris?). Of course one possible side effect is that there's already good noises from the Iranian nuclear talks if, in addition to sanctions, they're facing what looks like a prolonged period of low oil prices then the pressure to make a deal to reduce sanctions will increase which is, probably, something the Saudis wouldn't want to see.

Also I'd guess now would be the time for any Middle Eastern country to reform/abolish their fuel subsidies if they wanted to.

[Admiral Yi]

Do you mean the Iran nuke talks are going well?  I've read they're dead.

[KRonn]

Some American companies are already saying they're curtailing some fracking or offshore drilling plans due to the low price of oil. So the Saudi ploy is working, to some extent anyway. I would think some of the companies with larger numbers of fracking wells may be better off, not sure. Too bad that this happens as I'd rather see higher prices and less dependency of Mideast oil as it creates good paying jobs and would keep money here in the US. Same for Canada as well, I would think. I wonder if the US, Canada and Mexico could form a N. American Opec and work to supply mainly N. America and be self sustaining, if that's even possible with how fungible a product like oil is on the world market.

[KRonn]

Do you mean the Iran nuke talks are going well?  I've read they're dead.

I think the talks are basically that Iran will get nukes, just a matter of how long they're willing to be stalled on it, or how long to talk us to distraction on the issue while they proceed.