U.S. shale production boom came about because of U.S. shale producing companies ingenuity. That ain't changing anytime soon. If some more go under, others will replace them. Rinse, repeat. Russia will blink. OPEC too.
No, not really because Saudi crude is Sour (high sulfur content) and, as you suggest, requires more catalytic cracking capacity. And there's the tanker rates to contend with. But at a certain price inflection point it would certainly make its way there. Saudi oil finds its way to Europe and Asia mostly.
So it's more of a minor speed bump then a real issue? Curious if anyone has taken a stab at quantifying the $/barrel amount required to overcome that hurdle.
Yaaaaasss this is all about inserting Putin's nuts into a large vise. Aramco called up the European consumption desks within an hour of the conclusion of the OPEC meeting and offered cash spot Saudi crude immediately at a crazy severe discount to Brent and Russian stocks. Like $8 under spot market.
Yes and that is what concerns me, I would like to see the vice opened before real trouble could begin.
Same thing occurs to me at home with this CVirus. A little military episode overseas is always good for distracting the sheeple.
No doubt that Putin is using this opportunity to squeeze US fracking. But these OPEC 'price wars' never pan out and they are never sustained - 1973 Arab Oil Embargo withstanding.
And for conspiracy fans there is the angle that it is our Pres with his nuts in a vice and Pal Putey coming to his rescue. Lower crude, lower at the pump more to spend on other essentials and non essentials.
Are you seeing lower prices at the pump? April delivery for RB is sitting at like $1.16 per gallon. After all the taxes, we should be seeing under 2 bux per gallon now. Anyone seeing that outside of Texas or South Carolina?