| Mr Khan said:
Saudi oil is some of the lowest-cost to extract on the planet. They can afford to push the supply higher than anyone else and still turn a tidy profit on their operations, and trip up the business pretty much anywhere else. The question is whether they are deliberately trying to hurt someone, like us in America, or you in Russia. Hell, i'm from a part of the country that'll hurt a lot from this. |
:)
As you probably aware "patriots" of various kinds is the field of my "expertise", so check that. When the drop in oil prices have occur the "patriotic public" over here invented two possible explanations:
- Optimisitc: Saudis are trying to kill off the US shail oil industry. It's bad for America, and everything that is bad for America is good for us.
- Alarmist: Saudis are best America's allies, they are trying to kill off Russia's oil industry. We all are going to d-i-i-i-e. *running in cicrles*
Both equally conspirological, i.e. not smth that's unneccessary untrue, after all some conspiracy theories do turn into conspiracy facts, but theoretically unprovable.
But my old buddy Bill from England have told me there's easisest explanation -- the entire situation should give a viewer a sense of dejavue from 2008-2009 events -- when debt bubble collapse oil prices are going down. Back then only Fed's printing machine has stopped the process, which resumed now with the end of QE3. Back then it took about half a year for shale oil industry to react in severe rig count drop, how long would it take now? Probably more, probably this time prices won't go to the records of 2009 (~40USD) and stop at current ~60USD (after all Fed has poured a few trillions in the markets since then). Maybe there's some other stealth processes are going on in oil prices we don't see, but general trend is macroeconomic. It's in Fed's power to stop it by start flooding markets with "free" liquidity, but that'll only accelerate the process of dropping USD from world's trade, so it is in tough position: "to print or not to print" -- the descision not to print has it drawbacks too, of course. As for Saudis, their role in the act is to die in the process and "allied" status won't matter, otherwise collapse of energy markets in Eurasia would be hardly achievable. But the latter is merely a hyposesis.
//There's a lot of explanations circulate in the every given infosphere for any given fact that will suit any given agenda, I don't think that blindly adopting the first that come to one's attention is a good thing to do. Especially now, when war rhetorics is going on wildly and theoretically people should be more cautios about opinions they support. But as we all now, idiots are the main resource of capitalism, so these're probably just groundless hopes.
