Published: Sun, March 22, 2020
Markets | By Otis Pena

Russia Won’t Blink First In The Oil Price War

Russia Won’t Blink First In The Oil Price War

Citing statistics, on Friday's (March 20th) market wrap up, United Kingdom crude futures' prices were plunged 5.2 per cent to settle down at $26.98 per barrel, while the US West Texas Intermediate crude oil futures' scheduled to be expired on April, tumbled as much as 10.7 per cent to wind up the day at $22.53 a barrel.

Oil prices have lost more than half their value in the past two weeks as Saudi Arabia and Russian Federation kicked off a price war and the coronavirus pandemic destroyed demand.

Notably, US Shale requires crude oil prices to charter above $40 per barrel to stay profitable and Saudi needs a crude oil price above $30 per barrel, while Russian crude drillers could cope up with a $25-$30 per barrel crude oil prices to garner in the greens, an industry analysts' poll had revealed earlier this year.

The hard part to predict will be the psychology of MBS and Putin - two very strong personalities who can not back down without a clear, agreed-upon path that makes it look like they both won in different ways. But "if we can help (Trump) get a deal done, then I think that's when we do something".

Texas Railroad Commissioner Ryan Sitton said Friday he was invited by OPEC Secretary General Mohammad Barkindo to attend the group's summer meeting in Vienna.

Current COVID-19 Vaccine Efforts
If the pathogenic strain is also circulating in the animals from whom we contracted it, then there is a chance of re-transmission. The outbreak of severe acute respiratory syndrome (SARS) that China experienced in 2003 was already caused by a corona virus.

A senior State Department official said the federal government does not have the ability to restrict the Texas regulator from any work with OPEC to cut production.

Some US industry representatives were skeptical that Texas should intervene in the market.

The biggest fuels pipeline connecting the U.S. Gulf Coast oil refining hub with buyers on America's East Coast - including Atlanta, Philadelphia and NY - is reducing flows by 20% due to lack of demand. "Quotas are bad", said Mr Frank Macchiarola, senior vice-president of policy, economics and regulatory affairs at the American Petroleum Institute. "There's no reason during this time to try to imitate OPEC".

Saudi Arabia has ordered state-run Aramco to keep output at a record high of 12.3 million barrels a day over the coming months, but in a surprise move Thursday, both the kingdom and Iraq cut the rebates on freight costs they give to customers, effectively lifting prices.

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