Oil Price War on the horizon?

KSA not happy that Russia is flooding market in pursuit of foreign currencies. this should be interesting to watch unfold as I doubt that Russia is going to cut back.

Refiners must be killing it with oil under $70 and gas at $3.40.

Hopefully we are refilling the SPR at these prices.

Russia and Saudi Arabia are at odds after a flood of Russian oil supply pushed the commodity's price below a key break-even level needed to fund Saudi projects (msn.com)

Russia's pumping of cheap oil into the market is helping put downward pressure on prices for the commodity, and Saudi Arabia isn't happy as oil prices stay below a key break-even level, according to a report from The Wall Street Journal.

The report found that Saudi Arabia's efforts to curtail production and push oil prices higher earlier this year have been undermined by Moscow's flood of cheap oil supply, and that the oil-rich nation has expressed its anger at Russia for not following through on its pledge to throttle production, the report said, citing people familiar with the matter.

"Saudi officials have complained to senior Russian officials and asked them to respect the agreed cuts," the report said.

Members of OPEC+ said in early April that they would reduce oil output to help prop up oil prices. But recent data suggests Russia isn't following through on its side of the deal as it seeks to generate revenue to help fund its struggling economy and war effort.

 

only if they are refilling at the reduced price

 

Who is trying to force a recession and why would reduced oil prices force a recession? From everything I see, the only ones interested in forcing a recession are the pubs to try and put it on Biden and the dems.

My hope is that KSA will deploy some tactics to cut the Iranian drone supply to hurt Russia if/when Russia keeps pumping beyond their agreed upon amounts

 

China will take all the discounted oil they can get. They are in the process of building up their own SPR

 

well KSA is going to cut more, guess they are going to give Russia a pass on their overpumping. I guess the silver lining is that they will ahve reserve capacity if the market demands it

odd how last time they announced a cut so many thought it would spike the price of oil but the price kept dropping, perhaps OPEC has a better handle on the demand side than all the experts do.

Saudi Arabia cuts oil production again amid economic uncertainty : NPR

Saudi Arabia announced Sunday that it would begin cutting oil production by 1 million barrels per day in July to support the "stability and balance of oil markets."

Though the country says it doesn't use the cost of crude to make oil production decisions, the move is considered to be an attempt to prop up oil prices in response to global economic uncertainty and concerns that international demand could drop.
.................
OPEC+ countries also agreed to extend oil production cuts they announced in April through the end of 2024, reducing the amount of crude they pump into the world market by more than 1 million barrels per day. OPEC+ countries produce about 40% of the world's crude oil.

There had been pressure on many African nations and Russia to cut production. Meanwhile the United Arab Emirates will increase its crude output.