OILIGARGHY: Global Oil Majors Prepare for Prices to Halve to $20 a Barrel – By Larry Elliott

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If oil drops to $20 a barrel, that should pretty much put all the fracking, tar sands and deep sea oil rackets out of business. At $20 a barrel, they can’t cover their costs.

RIELPOLITIK

Source – davidstockmanscontracorner.com

– The world’s leading oil producers are preparing for the possibility of oil prices halving to $20 a barrel after a second day of financial market turmoil saw a fresh slide in crude, the lowest iron ore prices in a decade, and losses on global stock markets.

Benchmark Brent crude briefly dipped below $40 a barrel for the first time since February 2009 before speculators took profits on the 8% drop in the cost of crude since last week’s abortive attempt by the oil cartel Opec to steady the market.

But warnings by commodity analysts that the respite could be shortlived were underlined when Russia said it would need to make additional budget cuts if the oil price halved over the coming months.

Alexei Moiseev, Russia’s deputy finance minister, told Reuters: “If oil goes to $20, we will need to do additional [spending] cuts. Clearly we have…

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14 thoughts on “OILIGARGHY: Global Oil Majors Prepare for Prices to Halve to $20 a Barrel – By Larry Elliott

  1. To be honest i’m not happy to see price of oil plummet along with the value of Canadian dollar as we live in Thailand but supported with Canadian Gov. Pensions. Luckily we have a nice house and car paid for and really can’t complain but i’m sure others with monthly payments our suffering.

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    • What is really perplexing to me is the high value of American dollar, in times of trouble people rush to US$ for safety, the opposite should be the case

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    • Gerry (and Alan), it’s my understanding that it used to be that the only way to buy oil was in US dollars – Middle East countries were forced to sell oil in dollars, or the CIA would overthrow or assassinate their leaders (as in Iraq for example). This forced all countries that were dependent on foreign oil to oil large amounts of US dollars in reserve.

      At present Iran is willing to sell oil in other currencies and this is the real reason the neocons want to declare war on them.

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  2. Cold War, Currency War…

    The media dance around the truth, it is world war!
    https://ronmamita.wordpress.com/2015/12/17/uk-becomes-the-first-g7-country-outside-asia-to-ratify-the-articles-of-agreement-of-the-aiib/

    The IMF forgives Ukraine’s debt to Russia.
    What will Russia do?
    For that matter, what will China and other BRICS countries do?
    The IMF and U.S. neocons have sent the world a message.

    What must Greece feel, as they face debt default austerity, why the exception for Ukraine?
    Oh, we know it is because a WAR is being waged and you don’t argue with the person holding a gun to your head.

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