41–50 of 546 posts
What happens when Saudi Arabia collapses? Does the royalty get the fuck out of town on their private jets with as many gold bars as they can carry?
The gold bars are already in the US, as part of the Nixon-Faisal agreements. That should not be a comfort to the Saud kleptocracy, as the Shah of Iran discovered.
Crude spot at $10.80 right now. 40 percent crash in an day.
Thats WTI, Brent is still much higher.
Which brings up the topic of oil prices: there are many. Every blend, every location, has its own price. In fact the same oil can be sold at different prices if the seller so chooses. Of note Saudis have reportadly raised the price they offer americans as part of the deal, while lowering the price to asia.
Which leads to the saying:"In equity the algorithms are a secret and the prices are known, in oil the prices are a secret and the algorithms are public."
News can only talk about WTI or Brent, but exact prices at each market depend upon situations.
What happens when Saudi Arabia collapses? Does the royalty get the fuck out of town on their private jets with as many gold bars as they can carry?
This seems unlikely to me, given the low extraction costs they have for oil. I guess the biggest danger they would face is if they have to stop "paying off" their population, and this leads to an "arab spring" type of situation. But it seems even in that case they would unfortunately have the will and resources to use Syria-style brutal tactics to contain any uprising.
What happens when Saudi Arabia collapses? Does the royalty get the fuck out of town on their private jets with as many gold bars as they can carry?
The gold bars are already in the US, as part of the Nixon-Faisal agreements. That should not be a comfort to the Saud kleptocracy, as the Shah of Iran discovered.
Does this not make the case for investing in renewables over shale extraction and fracking that has a price floor below which it's not economical?
This is a temporary and largely self-inflicted shock, demand will return and prices will go back up. As much as I like renewables, with the latest oil prices I've snapped up oil/natural gas producer stock at a hell of a discount for the last few weeks.
For the record, I've also invested in renewable energy companies. Both ought to do well over the next 10 years IMO.
Earlier quoted context omitted.
UAE and Saudi Arabia imo will be ok. They are trying to build themselves into big entertainment and tourism hubs with their ventures into sports and investment in tourism etc I think though they will definitely suffer they may be able to weather the storm. Kuwait and Qatar on the other hand I'm not so sure about
Saudi Arabia is trying to build tourism? From where?
What happens when Saudi Arabia collapses? Does the royalty get the fuck out of town on their private jets with as many gold bars as they can carry?
Now not sure how long this will last, since the current price war is directly affecting the US producers. Time will tell.
[1] https://www.vox.com/2016/1/6/10719728/us-saudi-arabia-allies
What happens when Saudi Arabia collapses? Does the royalty get the fuck out of town on their private jets with as many gold bars as they can carry?
UAE and Saudi Arabia imo will be ok. They are trying to build themselves into big entertainment and tourism hubs with their ventures into sports and investment in tourism etc I think though they will definitely suffer they may be able to weather the storm. Kuwait and Qatar on the other hand I'm not so sure about
Ex: During the Arab Spring, Kuwait handed out $500k checks to all Kuwaiti males above 18 years old. He also told the citizenry that he would forgive all car loans - population went and bought ferraris, range rovers, etc. and got the loans all forgiven by the government.
I worry more about the Arab countries that have high populations and cannot afford to pay everyone off - Saudi is on that list.
The June contract, where most of the trading is happening, is at around $22, and the July contract is $28.