Welcome to DU! The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards. Join the community: Create a free account Support DU (and get rid of ads!): Become a Star Member All Forums Issue Forums Culture Forums Alliance Forums Region Forums Support Forums Help & Search

bronxiteforever

(9,287 posts)
Fri May 11, 2018, 08:59 AM May 2018

If Saudi Arabia decides to increase oil production it could kill OPEC

Business Insider
May 11, 2018
By Nick Cunningham


As has been widely discussed in the aftermath of President Trump's decision to withdraw from the Iran nuclear deal, the return of sanctions on Iran could disrupt oil shipments, with estimates ranging from essentially nothing to as much as 1 million barrels per day of Iranian supply going offline. But the decision also could put an end to the OPEC agreement.

Saudi Arabia could be the biggest beneficiary of Trump's decision, not just because from a geopolitical perspective (Saudi Arabia has long wanted the U.S. to confront Iran), but because any decline in Iranian supply will push up prices, dealing a financial windfall to Riyadh without any sacrifice.

Indeed, Saudi Arabia has wanted higher oil prices for some time, with rumors that it was targeting $80 per barrel, or even $100 per barrel. Saudi Arabia needs higher oil prices to fill budget gaps, and it also wants to ratchet up prices ahead of the Aramco IPO. Just as with Venezuela's plunge in output, any unexpected outage in Iran will be a boon for Saudi Arabia.

http://www.businessinsider.com/oil-production-from-saudi-arabia-could-put-opec-at-risk-2018-5?r=UK&IR=T

1 replies = new reply since forum marked as read
Highlight: NoneDon't highlight anything 5 newestHighlight 5 most recent replies
If Saudi Arabia decides to increase oil production it could kill OPEC (Original Post) bronxiteforever May 2018 OP
Yes, unfortunately the folks living in Saudi Arabia (most of them) ... SWBTATTReg May 2018 #1

SWBTATTReg

(21,856 posts)
1. Yes, unfortunately the folks living in Saudi Arabia (most of them) ...
Fri May 11, 2018, 09:48 AM
May 2018

have been facing economic headwinds, despite the massive presence of the oil revenues (revenues weren't keeping up with the need). Again, 1%ers take most of the gravy. Also, unfortunately in order for Saudi Arabia to succeed, the rest of the world dependent on oil suffers via higher prices and so far.

Latest Discussions»General Discussion»If Saudi Arabia decides t...