As the OPEC+ deal has expired, Russia and Saudi Arabia remain at odds, though the United States offered encouraging words that production cuts might be negotiated
The Russian-Saudi feud over oil production has destabilized the market even as the industry faces anemic demand and the potential for a
legion of layoffs
because of the coronavirus pandemic.
On the heels of plummeting prices, the market
rallied April 2
after US President Donald ...
... want to “harm Russia” in a similar way
[2]
, and Iran’s former oil minister Masoud Mir Kazemi believes that the USA and Saudi Arabia are also reckoning on damaging Iran.
“Am I the only one who thinks this, or is it really an oil war in which the USA and Saudi Arabia are taking action against Russia and Iran?” writes the well-known American political commentator Thomas Friedman. He assumes that Saudi Arabia and the USA intend to “pump Iran and Russia to death”, in other words to “bankrupt them”
[3]
.
“There ...
... increased to all time highs US local producers decided to jump on the bandwagon. I doubt that the US will be able to overtake Saudi Arabia and Russia as some reports argue by 2017-2020, but potentially we could see this giant becoming a physical superpower, as well as being a virtual one, as the next paragraph will discuss.
USA, as the centre of virtual paper market influences prices substantially, as volumes of financially traded oil exceed physically produced units. As we see, derivatives are a major element, as well as the capacity of liquidity in the ...
