Also Russia is essentially self-sufficient if necessary, Saudi Arabia must import lots of vital stuff. I don't know why the saudis chose to ratchet up the price war, but it looks like complete foolishness. My guess is the same reason they attacked Yemen: they're ruled by a clown.
Also Russia is essentially self-sufficient if necessary, Saudi Arabia must import lots of vital stuff. I don't know why the saudis chose to ratchet up the price war, but it looks like complete foolishness. My guess is the same reason they attacked Yemen: they're ruled by a clown.
China needs low oil prices to recover economy. They might have agreement with Russia to sabotage OPEC deal in exchange for share of their oil market. But that's just my speculation.
Another theory is that Saudis simply overestimated their influence and tried to pressurize Russia.
Anyway, keeping oil prices not too high is in the end a good thing for diversification of economy, but if they stay below 40 for long time it will hurt Russia too.
US stock markets fell over 7% at the opening of trading triggering an auto shutdown. It’s fun reading reddit investors losing their minds over the seizures.
I though Ivan only had 80Mil vs Saudis 297Mil
My guess is that Saudi is doing this because it dosnt want Russia to take away its market share, so it will bleed money, like Russia is also doing.
That was my thinking too, lower fuel costs free up cash to spend on other stuff usually.
I've been ignoring this yoyo market thing. I'm 35 and all my investments are mutual funds in my 401k, mostly indexes but with some large, small, mid and foreign stuff mixed in. So for me I'll just ride it out for another ~25-30 years and then convert some into cash or bonds before retirement. Years ago I would buy individual stocks in my own account and play around with options a bit. I lost a lot, made a lot, ending up pretty even after 4-5 years of doing it and realized I was never going to be good at it and should just stick to long term investments. I cashed that account out to help buy our house.
So sometimes these swings make me pine a little for a slush fund account and dream of all the quick profits I could've made off of put options but overall this stuff is so hard to time and you generally lose your shirt.
I wish I had more money freed up to invest, I read the next 2 weeks will be more volatile and I expect the virus news to lessen with warmer temps but I'm gathering up what I can to dump into the market by April or sooner depending on how the market responds.
I though Ivan only had 80Mil vs Saudis 297Mil
My guess is that Saudi is doing this because it dosnt want Russia to take away its market share, so it will bleed money, like Russia is also doing.
Half a century ago the oil producing nations openly formed the cartel so that the industrial nations couldn't play them against each other in a race to the bottom to see who would give their oil reserves away the fastest for the least. That did not sit well with the industrial nations, and now that two countries that historically view themselves as the only country that matters and demand that everyone else operate purely for their benefit are major oil producers there is no longer any real possibility for any cooperation for mutual benefit. Any deal involving Russia or USA#1 is always going to be in terms of "we get all the benefit and since we are in it together that makes it mutual and you better smile while we bend you over."
I've been putting off starting retirement funds for various reasons but this drop is probably a good time to get in on a discount. I don't plan on trying to predict the market beyond 'prices are low right now'.
I've been putting off starting retirement funds for various reasons but this drop is probably a good time to get in on a discount. I don't plan on trying to predict the market beyond 'prices are low right now'.
It's bad for speculators, for the piles of corporate debt in the US bond market. And because most other financial markets follow the US, are controlled by the same speculative practices, the effect is global.
Irrational in material terms, but financial speculation has not beet attacked to normal material conditions for many years now. It took this to finally blow the insane bubble. I was betting it'd last until after the US elections, but that was before the coronavirus.
This is the financial fiction really blowing up, not some minor glitch. Depression here we go...
Well, the oil price war started yesterday. And yes, it certainly drove the market down. Mostly though, it’s about all the uncertainty across so many areas. Trump feeds that.
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