Will Saudi Arabia crash their own production again to keep prices high?

Discussion in 'Commodity Futures' started by Error Correction Funder, Apr 12, 2018.

Will Saudi Arabia crash their own production again to keep prices high?

Poll closed May 12, 2018.
  1. Yes

    4 vote(s)
    57.1%
  2. No

    3 vote(s)
    42.9%
  1. Jakobsberg

    Jakobsberg

    No they are trying to pump as much as they can and sell it whilst still demand. Stone age didn't end because they ran out of stones......

    Brazil with deep sea oil and tar sand in Canada now act as upper price limit. As price rises these alternatives kick in.
     
    eliteubertrader and toc like this.
  2. toc

    toc

  3. Jakobsberg

    Jakobsberg

    For somethings like aviation fuel and plastics you still need oil as starting matetial but solar / electric cars now also act as price limits by reducing demand as price rises....and the Saudis know it. In 1970s / 80s there were no other alternatives.

    https://www.economist.com/node/2155717

    And once the demand for oil goes I expect the US / EU to no longer prop up the last remaining absolute monarchies in the world or keep sending troops there to ensure supply.
     
    Last edited: Apr 12, 2018
    Overnight likes this.
  4. Overnight

    Overnight

    The shift from crude oil to "other sources of energy" will not happen for another 90 years at least. It is a no-brainer.

    For now, crude will rule.

    http://www.businessinsider.com/electric-cars-oil-price-2017-7