Oil goes up to $35 this morning http://www.cnbc.com/2016/01/28/russ...-proposed-oil-output-cuts-by-up-to-5-pct.html
saudi baiting US producers into cutting so they can fill the void....with Iran coming on, somebody has to bait the hook for bluffing the US into a compromise and the saudi group filled that roll. With Iran now off sanctions thanks to the US, saudis hate the US more than ever and will now stop at nothing to kill off US fracking and deep water production. I would look for $25 oil before saudi even batting an eye. ..their cost of production average is probably around $14 Its pretty well known that Iran has made many individual delivery deals to ship oil at $25, mostly to previous market buyers they supplied prior to sanctions in order to regain this market share. Iran production cost also closer to $14 Now russia...I think they might also take the bluff since they have a bit higher production cost and more important they are hurting badly for extra oil revenue yes, there may be smoke without fire if spin doctors are blowing it
Great point, and this is probably what is going on on the backstage. I hope oil era is going to end soon, I'm tired of this corruption and lie.